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Commodities » Precious Metals

Gold and silver daily review (August 19, 2014)

August 19, 2014, Tuesday, 05:34 GMT | 00:34 EST | 10:04 IST | 12:34 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined around 0.5 percent yesterday as the threat of an escalation of tensions in Ukraine appeared to fade for now, and a rally in global equity markets and strength in the dollar sent bullion prices below $1,300 an ounce.

Equity markets got a boost after Russian Foreign Minister Sergei Lavrov said all issues around a humanitarian convoy sent by Moscow to relieve needy areas of eastern Ukraine had been resolved. Moscow said it would like a ceasefire to allow aid to get to people trapped by the fighting.

However, tensions remain high, with Ukraine saying that dozens of people, including women and children, were killed as they fled fighting in eastern Ukraine on Monday when their convoy of buses was hit by rocket fire. Also, SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.26 percent to 797.69 tonnes on Monday.


Silver

Spot silver prices rose 0.2 percent yesterday taking cues from strength in copper prices. However, sharp gains were capped owing to weakness in gold prices.


Outlook

On an intraday basis, we expect gold and silver prices are expected to trade sideways as tensions persist between Russia and Ukraine despite having faded for now. Any developments on the geopolitical front will provide further direction to prices.

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