New York: 04:04 || London: 09:04 || Mumbai: 12:34 || Singapore: 15:04

Commodities Precious Metals

Gold and silver daily review (April 17, 2014)

April 17, 2014, Thursday, 05:34 GMT | 00:34 EST | 09:04 IST | 11:34 SGT
Contributed by Angel Broking


Gold

Spot gold prices traded steady in yesterday’s session, but continue to trade above the $1300 mark supported by tensions in Ukraine on one hand and sharp outflow from the ETF’s in nearly four months on the other. Holdings in SPDR Gold Trust fell 8.39 tonnes to 798.43 tonnes on Wednesday - the biggest outflow since Dec. 23, indicating waning investor interest.

Housing data released last night showed that Groundbreaking for new homes increased in March, but remained well below the post-recession peak hit in November and housing market continues to drag the US economy. Meanwhile, the U.S. gold market will be shut on Friday for the Good Friday holiday.

On the MCX, gold prices gained marginally by 0.1 percent to close at Rs.28589/10 gms.


Silver

Taking cues from steady gold prices, spot silver rose by 0.2 percent on positive performance in the base metal complex and good economic data from the Euro-zone.

In the Indian markets, silver prices gained by 0.3 percent taking cues from international markets and revision in base price by the Indian government. The Indian government yesterday hiked the import tariff value on gold and silver to USD 431 per 10 grams and USD 646 per kg, respectively, taking firm global cues. During the first fortnight of the current month, tariff value on imported gold was fixed at USD 421 per 10 grams and silver at USD 644 per kg.


Outlook

On an intraday basis, we expect the precious metals pack to trade sideways or may be headed lower as investors will take profit off the table ahead of the long week end holiday as markets resume on next Monday. Meanwhile gold prices will take further cues from the economic data to be released from the US. Unemployment claims and Philly fed index will be crucial for further price direction.

In the Indian markets gold and silver prices are expected to trade sideways with no major data to be released from India nor any major movements expected in rupee.