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Commodities Precious Metals

Gold and silver daily review (December 05, 2013)

December 5, 2013, Thursday, 11:08 GMT | 06:08 EST | 15:38 IST | 18:08 SGT
Contributed by Angel Broking


Gold

Spot gold prices gained around 1.6 percent yesterday after supportive buying was seen from lower levels by the investors. Further, decline in ETF gold holdings managed under SPDR Gold Holdings Trust by 0.3 percent to 383.71 tonnes and strength in the DX could not add downside pressure on the prices.

Additionally, concerns of QE tapering by the Federal Reserve prevented sharp upside in prices. The yellow metal touched an intra-day high of $1250.3/oz and closed at $1243.20/oz in yesterday’s trade.

On the domestic front, prices gained around 2 percent and closed at Rs.30950/10 gms after touching an intra-day high of Rs.31062/10 gms on Wednesday.


Silver

Taking cues from rise in gold prices along with upside in base metals complex, Spot silver prices rose around 3 percent yesterday.

Further, strength in the DX coupled with weak market sentiments capped sharp gains in the prices. The white metal touched an intra-day high of $19.87/oz and closed at $19.70/oz in yesterday’s trading session.

On the MCX, prices rose around 2.3 percent and closed at Rs.43831/kg after touching an intra-day high of Rs.43961/kg on Wednesday. Rupee appreciation capped sharp gains in the prices.


Outlook

In today’s session, we expect precious metals to trade on a mixed note in international markets on the back of declining trend in gold and silver ETF’s holdings. Further, strength in the DX coupled with weak market sentiments will add downside pressure in the prices. Additionally, concerns regarding the QE tapering by the Federal Reserve will act as a negative factor. However, supportive buying seen from lower levels and prices have gained sharply in yesterday’s trade and will continue with positive movement in today’s trading session.

In the Indian markets, appreciation in the Rupee will prevent sharp positive movement in the prices.