New York: 11:55 || London: 14:55 || Mumbai: 20:25 || Singapore: 22:55

Commodities Precious Metals

Gold and silver daily review (August 18, 2014)

August 18, 2014, Monday, 05:33 GMT | 01:33 EST | 10:03 IST | 12:33 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined around 0.3 percent last week owing to rising global equities and an apparent easing of tensions over Ukraine and the Middle East, prompted bullion investors to lock in profits above $1,300 an ounce. Equity markets largely ignored news Russia would send an aid convoy to eastern Ukraine, a move Western officials have said could serve as a pretext for an invasion.

However, weak economic data from the US pointed to some loss of momentum in the U.S. economy, reducing fears among bullion investors that the Federal Reserve may raise interest rates sooner than expected.

The Commerce Department said retail sales were virtually unchanged in July, in part because of a second straight month of declines. July's reading was the weakest since January 2014.

On the MCX, gold prices declined by 0.1 percent and closed at Rs.28614/10gms.


Silver

Spot silver prices declined by more than 2 percent last week taking cues from weakness in gold and base metal prices.

On the MCX, silver prices declined by around 1.3 percent and closed at Rs.43263/kg.


Outlook

On an intraday basis, we expect gold and silver prices are expected to trade sideways as weak US data has led to easing of fears that the Federal Reserve may soon raise interest rates. On the other hand, tension in Ukraine and Iraq continue to build the safe haven appeal for the precious metal.

On the MCX, gold and silver prices are expected to trade sideways taking cues from sideways trade in international markets.

Stock Market Forum