Precious Metals strengthens on weak equity market and fall in dollar index.
In Euro markets FTSE 100 fell by 0.95%, DAX fell by 1.25%, and IBEX 35 dropped by 2.33% today. DXY index fell to 80.153 close to the month low. These all led Gold prices near to 2 months high at 1272.68 at London Metal Exchange.
Increased Physical demand from China also boosted the metal prices to 6 months high. Due to fall in stock prices investors lose bit of confidence on risky assets that increased inflow in Gold and Silver.
Silver gained by 1% and traded near to $20.34/ounce while Platinum and Palladium were little down today. Palladium dropped by 0.16% and Platinum fell by 1.1% after a week rally on miner strike.
We are expecting that weak dollar and equity markets may add more money into precious metals. In India import duty will not be decreased till the next fiscal year that may keep prices high at domestic market.