GOLD
On Monday, the yellow metal surrendered to slim losses in the domestic market as the strength of the dollar held back demand for Gold as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand for the precious metal.The dollar rallied as investors sought shelter in safe haven assets after a decisive “no” vote at a Greek bailout referendum raised the risk of the country’s exit from the euro, prompting investors to cut risky bets.Sunday’s referendum results showed that 61 per cent of Greeks voiced against further spending cuts and tax hikes imposed by the country’s creditors, forcing Greece to get into an economic unknown with its euro membership now in limbo. Euro area finance ministers and leaders will hold an emergency meeting on Tuesday with German Chancellor Angela Merkel warning that time is running out for Greece to reach a plan to remain a part of the euro while the European Central Bank (ECB) tightened liquidity norms for the cash-strapped Greek banking and financial system. However, gold received some support from speculation of further aggressive policy easing measures in China to stem a stock market rout, which may help bolster gold demand in one of the world’s leading bullion consumers. The precious metal may ink a rebound today as traders eye the outcome of a Euro area emergency meet to discuss Greece, supporting safe haven inflows into the bullion.
At the MCX, Gold futures for August 2015 contract closed at Rs 26,328 per 10 gram, down by 0.09 per cent after opening at Rs 26,369, against the last closing price of Rs 26,352. It reached the intra-day low of Rs 26,187 up to the time of closing.
SILVER
On Monday, Silver entered under renewed selling pressure during late noon trade in the domestic market, as a stronger dollar cut the demand for Silver as an another asset. Powerful greenback makes the bullion more costly for those holding different currencies, thus dimming demand for the precious metal.The dollar rallied as fears over Greece’s exit from the euro intensified after the country rejected further European driven austerity measures to secure new bailout aid, putting Greece on the path to a showdown with European finance officials, prompting investors to seek shelter in the safety of the greenback.At Multi Commodity Exchange of India Ltd (MCX), September 2015 contract of Silver futures, are trading at Rs 35,880 per 1 kg, down by 0.77 % after starting at Rs 36,025, against the last closing price of Rs 36,159. It reached the intra-day low of Rs 35,801. (At 15:57 PM).
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