Gold to remain under pressure in short term

Might see a price of $1,175 an oz

Gold is likely to remain under pressure in near term, thanks to lack of risk appetite among traders and could see a price of $1,175 an oz. This works out to about Rs 26,000 per 10g in the domestic market. Last week, gold closed at $1,212 an oz in London and Rs 26,383 per 10g for delivery in near month on the Multi Commodity Exchange (MCX).

The major support level for silver is seen at $15.50-15.75 an oz for silver, a decline of another $0.75-100 from Friday’s close. The decline in silver might see prices below Rs 36,000 a kg in the rupee term in coming weeks. Analysts believe last-minute potential agreement between Greece and its European creditors caused gold prices to end in negative territory.