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Commodities Precious Metals

Gold and silver daily review (April 04, 2014)

April 4, 2014, Friday, 05:18 GMT | 00:18 EST | 08:48 IST | 11:18 SGT
Contributed by Angel Broking


Gold

Spot gold continued its fall in the sixth out of last seven sessions on prospects of good economic growth bolstering the Fed to raise interest rates. Meanwhile markets are nervously waiting for the US nonfarm payrolls data as the yellow metal heads for three straight week of losses amid better performing equities. In addition strength in the DX also acted as a negative factor.

On the other hand, Gold premiums in India are expected to fall from current levels of about $30 an ounce after the central bank indicated it is considering removing some of the curbs to trade that have crippled imports.

On the MCX, gold prices gained by 0.9 percent to close at Rs.28435/10 gms


Silver

Tracking weak cues from fall in gold prices even spot silver prices declined as investors appeal for the white metal seem to be waning and money managers are continuously reducing their long bets on silver in turn exerting downside pressure on the metal

On the MCX, silver prices declined by 0.3 percent and closed at Rs.43021/kg.


Outlook

On an intraday basis we expect gold and silver prices to trade lower as markets are anticipating good jobs data from the US tonight. Also, the recent economic data released from US indicates that the economy is on a path of growth trajectory. This also raises hopes of strengthening dollar which in turn can lead to further price correction in the precious metals.

On the MCX, we expect prices to trade mixed as rupee is expected to depreciate which will cushion sharp fall in prices.