MCX Gold Silver Insight- bullion Updates

Gold- At the Globex platform Gold is seen trading $1545.50, down by $11 from the previous closing. The dollar index at the moment is showing some strength over the majors. The US personal income and spending increased more than estimated might have boosted risk appetite. From the economic data front, the US construction spending and ISM manufacturing is likely to improve which may put some pressure on the metal. Among the other precious metals, Palladium and Platinum have also shattered. At present Indian rupee is depreciating
against the dollar which may restrict some losses. Overall, gold is likely to trade at a down side today on the back of a stronger dollar index and a likely favorable data expectation from the US. We expect a range bound movement for the metal

Silver- Silver plunged as much as 9.62% ($43.79) at the moment after the dollar index rebounds. At present the dollar index is up by 0.07% at 73.085. The CME group has raised the initial margin by 13% for speculative positions, led the metal to drop. As discussed in gold’s outlook, the economic data which are yet to release from the US are mostly favorable to the economy and hence this may put little pressure on the metal. The stronger dollar index is also another factor for the metal to retreat. Overall, it is likely for silver to open low and is likely to have a wide range bound movement.