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Commodities Precious Metals

Gold and silver daily review (December 11, 2013)

December 11, 2013, Wednesday, 04:56 GMT | 23:56 EST | 09:26 IST | 11:56 SGT
Contributed by Angel Broking


Gold

Spot gold prices gained around 1.6 percent yesterday on the back of weakness in the DX. Further, upbeat market sentiments in early part of the trade supported an upside in the prices.

Additionally, declining trend in SPDR gold holdings also could not refrain from prices to trade in positive territory. The yellow metal touched an intra-day high of $1267.26/oz and closed at $1260.30/oz in yesterday’s trading session.

In the Indian markets, prices rose by 1.4 percent and closed at Rs.29535/10 gms after touching an intra-day high of Rs.29575/10 gms on Tuesday. Rupee appreciation capped sharp gains in prices on the MCX.


Silver

Taking cues from rise in gold prices along with upside in base metals complex, Spot silver prices gained around 2.6 percent yesterday. Further, weakness in the DX acted as a positive factor. The white metal touched an intra-day high of $20.42/oz and closed at $20.40/oz in yesterday’s trade.

On the domestic front, prices rose 2.9 percent and closed at Rs.45450/kg after touching an intra-day high of Rs.45549/kg on Tuesday.


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, weak market sentiments along with strength in the DX will add downside pressure on the prices. Additionally, concerns of QE tapering by the Federal Reserve will act as a negative factor.

In the Indian markets, depreciation in the Rupee will support an upside in the prices.