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Commodities Precious Metals

Gold and silver daily review (April 10, 2014)

April 10, 2014, Thursday, 05:47 GMT | 00:47 EST | 09:17 IST | 11:47 SGT
Contributed by Angel Broking


Gold

Gold prices rose by 0.2 percent on Wednesday on signs of increasing demand from China and rising tensions over Ukraine increasing its safe haven appeal. Besides, minutes from the Federal Reserve's policy meeting showed that officials were not keen on increasing interest rates anytime soon acted as a positive factor.

But investors continued to pull money out of gold-backed exchange-traded funds, raising the risk that price gains could be short lived. Also, Gold stocks sitting inside U.S. exchange warehouses have risen to a 10-month high as physical buying has continued to weaken, underscoring concerns about slowing demand from Asia.

On the MCX, gold prices decreased by 0.2 percent although international markets traded positive coupled with rupee weakness and closed at Rs.28417/10gms.


Silver

Spot silver prices declined by around 0.7 percent although base metals complex traded on a positive note. However sharp downside in prices was cushioned on rise in appetite for the white metal on account of rise in gold prices acted as a positive factor. Besides, weakness in the DX also lifted silver prices.

On the MCX, silver prices declined by around 1.2percent taking cues from international markets and closed at 42675/kg


Outlook

On an intraday basis, we expect gold and silver prices to trade stronger as investor fears with regards to rise in interest rates in the US have taken a back seat. In addition the geo-political tension with regards to Ukraine is increasing the safe haven appeal for the yellow and the white metal. However, slowing physical demand from Asia can act as a negative factor and exert downside pressure on prices.

On the MCX, we expect gold and silver prices to trade positive on account of rupee weakness and strength in the international markets.

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