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Commodities Precious Metals

Gold and silver daily review (August 05, 2014)

August 5, 2014, Tuesday, 07:43 GMT | 02:43 EST | 12:13 IST | 14:43 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined on Monday as a bailout agreement to rescue Portugal's largest listed bank and a better tone to the global economy reflected by a higher S&P 500 equities index reduced the safe-haven buying in the yellow metal.

Gold prices has now dropped in five out of the last six sessions after a string of encouraging U.S. economic data including strong second-quarter economic growth last week prompted selling. In the physical markets, buying remained subdued in the seasonally quiet summer period, even as many consumers expected prices to decline further.

On the MCX, gold prices declined by around 0.5 percent taking cues from weak international markets and closed at Rs.27915/10gms.


Silver

Weakness in gold prices dragged spot silver prices too as it declined by around 0.6 percent to close at $20.2/oz. However, sharp fall was cushioned on strength in the overall base metals complex.

On the MCX, silver prices declined by 0.7 percent and closed at Rs.44121/kg.


Outlook

On an intraday basis, we expect gold prices to trade lower as the news of rescue of the Portugal’s biggest bank has reduced the safe haven bid for the yellow metal. Besides, the host of data sets released from the US also indicates optimism and growth in the US economy in turn exerting downside pressure.

On the MCX, gold prices are expected to trade on a negative note taking cues from weak international markets.

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