Precious metals jumped initially but ended the day flat as the rise in dollar against the Euro and the U. S. housing data released last day did not support the rise in Gold prices.

The dollar rose against the euro on Wednesday as fears of a U. S. credit downgrade faded and a European Central Bank official said interest rates could fall further if economic conditions worsened.

Gold prices are expected to trade up during the day as the widening treasury yields have raised demand concerns and thereby hope of a global recovery is fading away. But one should watch out for U. S. data that is to be released later in the day as better than expected data can improve the risk appetite of investors and trigger a downside in Gold prices.

Gold prices moved sideways in the previous sessions, breaching both the High and Low of the earlier Session. Thus, it is giving no clear direction for the day. Looking at the rising +DI and RSI (above the MA), the bias remains positive in Gold. Therefore, one can remain long in Gold at lower levels around 14500-50, targeting 14750-770 levels for the day.

Silver prices gave a filled green candle in the previous session, which is bullish for Silver above 22600. The bulls seem to have entered in Silver, taking prices to 3-months High. Silver managed to close at 23165. Taking clues from rising +DI and RSI, Silver prices may see upside. If prices maintain above
23000 by close today, new buying is expected to come in which can take Silver to 24000 levels in near term. Thus, one should not sell Silver at this levels rather should buy at dips.