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Commodities Precious Metals

Gold and silver daily review (August 08, 2014)

August 8, 2014, Friday, 06:45 GMT | 01:45 EST | 11:15 IST | 13:45 SGT
Contributed by Angel Broking


Gold

Spot gold prices rose on Thursday on increasing safe haven bids and gained more than half a percent amid rising tensions in Iraq and Ukraine. Prices turned positive on reports that U.S. President Barack Obama was considering air strikes and emergency relief airdrops to help 40,000 religious minorities in Iraq, who are trapped on a mountaintop after threats by Islamic militants.

On the contrary, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 2.4 tonnes to 797.65 tonnes on Wednesday.

On the MCX, gold prices gained by 0.48 percent and closed at Rs.28770/10gms.


Silver

Spot silver prices declined by half a percent in contrary to the strong trend in gold prices although US president said that they are considering air strikes on Iraq. Declining speculative interest in the metal, strength in the dollar index coupled with profit booking at higher levels led to the weakness. However, strong performance in the base metals complex cushioned sharp downside in prices.

On the MCX, silver prices declined marginally by 0.2 percent in line with weakness in international markets.


Outlook

On an intraday basis, we expect gold and silver prices to trade on a positive note on escalation of geo-political conflict between Russia and Ukraine on one hand and tensions in Iraq on the other hand. However, declining investor interest in the ETF holdings as indicated by liquidation in SPDR gold trust will exert downside pressure on prices.

On the MCX, gold and silver prices are expected to trade on a positive note taking cues from strong international markets and rupee weakness.

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