Gold prices on MCX are currently trading flat, largely consolidating. Asian equity markets ended largely higher and European equity markets continue to trade with strength. IIP numbers from India came in lower and thereby rupee also ended largely flat. Euro zone industrial production came in higher and Portugal also successfully raised money in the auction though at a higher yield. This abated the fears of sovereign issues and thereby gold being a safe haven could not find much support from this. Later in the day, import price index is expected to come in modestly lower from prior month. Overall, we expect range bound trading for gold prices.
Silver however continues to outperform and is trading higher with gains of half a percent, tracking stronger base metals. The gold-silver ratio continues to move lower on the back of outperformance of silver. Overall, silver prices might also largely consolidate.
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