Precious metals ended the day in a positive territory as the weakening dollar prompted fresh buying by investment funds. The upside in precious metals was capped on MCX due to appreciation of Rupee against dollar.

MCX Silver ended the session at Rs. 24369, up by 1.33 %.

The dollar dropped to fresh lows for the year against the euro on Tuesday, as strong U. S. housing sales data reinforced optimism about the health of the global economy, sapping safe-haven demand for the greenback.

Holdings of the world's largest gold and silver exchange traded funds, New York's SPDR Gold Trust and iShares Silver Trust , both rose on Monday. SPDR's holdings were up 15.27 tonnes at a record 1,134.03 tonnes.

The overall trend in the precious metal remains bullish amid weakening dollar and signs of economic stabilization. But the steep price rise in past one month may cap further smart rallies before a correction. Also rupee appreciation is another important pressurizing factor for the domestic markets.

Gold prices continue to remain above 7 day EMA. RSI is almost in neutral zone. MCX gold prices are moving in a range and convincing upside move can be triggered once it breaches 14950-70 area. Initial resistance is at around 14920-14925 levels.

Silver prices are overall in an uptrend. Prices are above 7 and 21 EMA. Break over above the levels of 24300 in silver has made it bullish. Any dip would be a buying indicator. Strongly supported at the levels of around 23800 levels. Breaching this 23800 levels in Silver can trigger slightly downside around 23350-500 levels.