Expert Analysis for Gold and Silver Futures Trading

Precious metalsPrecious metals ended lower on Thursday as the dollar turned higher in a volatile session, and further unwinding of fund interest because of lower inflation expectations led to further weakness in this complex.

Gold futures declined by nearly $1.4 or 0.15 percent and settled at $934.6 an ounce on COMEX while Silver futures lost over half a percent on COMEX. However, Gold and Silver lost 0.17 percent and 0.08 percent respectively on MCX.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,132.15 tonnes as of June 18, unchanged from the previous business day.

The Initial claims and Jobless claims data released showed decent improvement. Initial claims turned out to be 608 against the expected figure of 600 while Jobless claims number dropped to 6.687 from 6.816.

South Africa's biggest mineworkers' union told that its members were prepared to down tools to win a wage rise, but hoped for a deal to avert a strike.

Gold lost some ground in the last trading session resulting from unwinding of funds and strength in dollar. There may be further selling pressure by funds, mainly on the back of expectation of low inflation. Any appreciation in dollar from here may add pressure on Gold prices. We recommend selling on every rise.

Silver is expected to track Gold and dollar during the day. We expect Silver to trade sideways to down during the day following Gold.