Gold and silver prices slipped this week in the international as well as domestic markets. Gold prices are heading for the first monthly loss in June 2017 with Comex gold declining by 1% week-on-week and MCX futures by 0.9% week-on-week.
Rising interest rate scenarios, weak investment demand, and optimism about the US economic growth and hints from leading central banks to end the era of easy money policy spells trouble for gold prices. Although, dollar index is standing at nine month lows, it is not really offering any support for precious metals.
On the other hand, oil prices have risen by almost 5 percent this week on account of bargain hunting, though this counter is troubled by supply overhang and higher inventories across the globe. Analysts feel that the rally may fade away soon. “The rally may fade sooner than later. Investors should not be excessively bullish on oil,” said Prathamesh Mallya, chief analyst, non agri- commodities and currencies at Angel Broking.
Zinc inventories on the LME are at 8 year lows while consistent decline in Copper inventories is also leading the positive momentum in the base metals counter. This momentum is expected to continue in the coming week also with possible targets of Rs 394 in copper and Rs 183 per kg on zin, analysts indicated.