Spot gold prices declined around 0.5 percent as the metal witnessed profit-booking on Thursday. But a weaker dollar cushioned sharp decline in the yellow metal. It touched an intra-day low of $ 1519.60/oz and closed at $ 1531.90 yesterday. On the MCX, Gold August contract declined 0.7 percent and touched an intraday low of 21.891/10 gms on Thursday.
Margin hike on silver forward contracts from Shanghai acted as a negative factor for silver to trade lower in yesterday's trading session but a weaker dollar cushioned further downside.
Spot silver slipped around 1.8 percent on Thursday and touched intra-day low or $ 35.61/oz. MCX Silver July contract slipped more than 2 percent on account or Rupee appreciation and closed at 56,245/kg yesterday.
Outlook
We expect gold to trade higher today mainly on the back or poor global market sentiments and ongoing Euro Zone debt worries which will increase safe-haven demand.
Silver on the other hand could continue to witness pressure on the back of move by china to increase margins on silver trading coupled with downside in base metals.
