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Commodities Precious Metals

Gold and silver daily review (December 09, 2013)

December 9, 2013, Monday, 04:27 GMT | 23:27 EST | 08:57 IST | 11:27 SGT
Contributed by Angel Broking


Gold

Over the last week, gold prices in dollar terms fell almost 2 percent, slipping to a low of $1211.44/oz and closing at $1228.24/oz. Positive economic data from the US pressured prices on concern that an upbeat economic scenario would move the Federal Reserve towards its goal of beginning the QE taper.

On the MCX, the near-month futures contract declined around 1 percent only and closed at Rs28,720/10gm on Friday. Fall in gold prices in the domestics markets was cushioned as demand during the wedding season in India rises during December.


Silver

Testing a low of $18.86/oz during the week, silver prices in dollar terms fell around 2.5 percent. Concerns with respect to the QE taper remained a major negative trigger for precious metals last week.

On the MCX, the silver near-month futures contract declined almost 4 percent as Rupee appreciation led to sharper losses in the domestic markets. Over the week, the white metal touched a low of Rs42,418/kg.


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. However, upbeat market sentiments after favourable economic data from US on Friday coupled with weakness in the DX will cushion sharp downside or even reversal in the prices.

In the Indian markets, appreciation in the Rupee will exert downside pressure on the prices.