Commodities » Precious Metals

Gold and silver daily review (December 23, 2011)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Precious metals finished slightly lower on Thursday, falling with the euro, as investors feared European leaders were not much closer to solving the euro zone debt crisis.

IN FOCUS

- Holdings in the SPDR Gold Trust the world's largest gold-backed exchange traded fund fell to 1267.88 tonnes by Dec 22, down by 13.31 tonnes from the previous business day.

- Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust rose to 9699.55 tonnes by Dec 22, up by 1.51 tonnes from the previous business day.

- Russia's gold and foreign exchange reserves fell to $501.3 billion in the week to Dec. 16 from $513.0 billion a week earlier, central bank data showed on Thursday.

FUNDAMENTAL OUTLOOK

Precious metals are trading higher on COMEX today. We expect prices to trade higher for the following trading session on account of higher equities and also encouraging U.S. economic data, while the persistent gloom hanging over the euro zone would weigh on sentiments.