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Commodities Precious Metals

Gold and silver daily review (August 28, 2014)

August 28, 2014, Thursday, 06:48 GMT | 01:48 EST | 11:18 IST | 13:48 SGT
Contributed by Angel Broking


Gold

Weakness in dollar and lingering geopolitical tensions helped offset selling pressure from a record rally in U.S. equities as spot gold prices gained by around 0.14 percent and closed at $1282.5/oz. Traders focused on riskier assets, while speculation the European Central Bank will resort to monetary stimulus also triggered some interest in bullion.

On Wednesday, Ukraine accused Russian forces of launching a new military incursion across its border, a day after the leaders of both countries agreed to work toward ending a separatist war in the east of the country.

On the MCX, gold prices declined by 0.41 percent and closed at Rs.27780/10gms.


Silver

Spot silver prices gained in tandem with strength in gold prices on bargain buying at lower levels and weakness in the dollar index. However, weakness in the base metals complex on account of profit booking capped the rally.

On the MCX, spot silver prices declined by 0.1 percent and closed at Rs.41933/kg.


Outlook

On an intraday basis, we expect gold and silver prices to trade sideways as the economic optimism in the US has raised the prospects of growth in the nation. On the other hand, the renewed tensions between Russia and Ukraine will boost safe haven bids for the precious metals pack.

Meanwhile, the host of data sets to be released from the US in the evening session will decide the trajectory of gold and silver prices.

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

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