Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

GoldGold futures slid in the early trades on the release of robust new home sales numbers which made gold losing its safe-haven appeal. But it regained the lost ground on the back of slide in the dollar and added support from the rise in crude oil prices.

Silver futures outperformed gold on MCX as well as on COMEX. The rise in base metals prices provided added support to Silver.

Sales of new single-family homes in the United States rose by 11 percent in June from the previous month, exceeding expectations, while the inventory of homes for sale fell to an 11-year low, government data showed on Monday.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings stood at 1,086.61 tonnes as of July 27, unchanged from the previous business day. They have remained unchanged since July 22.

In supply news, Harmony Gold said it had stopped production at a mine shaft in Mpumalanga, South Africa, following a fatal accident there on Friday. Elsewhere, the Chamber of Mines said it saw a good possibility of reaching a wage deal with workers in the South African gold and coal mining sectors.

Jewelers in India, the world's largest gold consumer, were on the sidelines due to high prices. Also, fewer weddings take place during the monsoon season because farmers, who account for 65 percent of the country's gold demand, spend their money on sowing crops.

The dollar dropped to its lowest level in more than seven weeks against the euro as a jump in U. S. new home sales bolstered the market's risk appetite and lowered the greenback's safe-haven appeal.

Precious metals may witness sideways to up movement as the fall in treasuries and weakening dollar may support gold prices. Silver looks good and any decline of Rs. 100-120 can be used as a buying opportunity.