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Commodities Precious Metals

Gold and silver daily review (April 25, 2014)

April 25, 2014, Friday, 07:24 GMT | 02:24 EST | 10:54 IST | 14:24 SGT
Contributed by Angel Broking


Gold

After falling to a two and a half month low spot gold prices gained on Thursday on rising geo-political tensions and options related buying helped reverse the precious metals losses in the previous session. Prices were supported as Ukrainian forces killed up to five pro-Moscow rebels as they closed in on the separatists' military stronghold in the east. Gold rose as much as 1.1 percent to near $1,300 an ounce when Russia said it launched army drills near the border in response, raising fears that its troops would invade.

However sharp gains were restricted on Upbeat U.S. durable goods orders for March that gave a boost to the dollar, triggering declines in the price of gold. Also, the investment demand remains weak with the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, seeing sharp outflows in recent days.

On the MCX, gold prices gained by 0.7 percent on Wednesday and closed at Rs.28790/10 gms.


Silver

Taking cues from strength in gold prices even spot silver prices gained by 1 percent on escalation og geo-political tensions between Russia and Ukraine. Besides, weakness in the DX and strength in copper prices lifted prices.

On the MCX, silver prices gained by 0.6 percent on Wednesday and closed at Rs.42482/kg.


Outlook

On an intraday basis, we expect gold and silver prices to trade positive on escalation of geo-political tensions while outflows from the ETF’s and good economic data sets from the US will cap sharp gains in prices. Meanwhile, prices will take cues from the economic data sets to be released in the US.

On the MCX, gold and silver prices will trade positive taking cues from international markets and rupee weakness.