Precious metals ended the day on a negative note against the backdrop of better than expected ISM Index data from U. S. which improved the risk appetite of investors. MCX Gold slid by Rs. 100 and closed at Rs. 14823. MCX Silver ended the session at Rs. 24048, down by Rs. 147.

The world's largest gold-backed and silverbacked exchange-traded funds increased their holdings to record highs as of June 1, as a rise in global stock markets has bolstered investment funds' purchasing power.

Gold ended slightly lower in the last trading session due to better than expected ISM data. We expect Gold to move sidewise to down during the day because the improving risk appetite may result in some profit booking at this level. We recommend selling gold at every rise during the day.

Gold opened positive but entered into bear phase later during the day, bringing the prices down to 14823 at close. Gold is taking resistance at the earlier high. The ADX and +DI are still positive. However, the RSI gave a cross-over on the downside with MA. Thus, taking early signal from RSI, Gold can move down to 14650-500 levels from the current levels of 14823. Therefore, one should buy gold only above 15000 levels.

Silver has witnessed an upside rally from 21800 to 24400. Yesterday the prices moved lower after the positive opening, breaching the earlier close. Thus, indicated a negative bias. If we look at the retracement from the top of 24400 to bottom of 21700, Silver has been taking support at the 23.6% (23844).Today, if prices breach the 23800 level, price can fall further to 23450 and 23130 levels on the downside. Thus, one should hold their buying decision for the day.