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Commodities Precious Metals

Gold and silver daily review (December 12, 2013)

December 12, 2013, Thursday, 05:24 GMT | 00:24 EST | 09:54 IST | 12:24 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined by 0.7 percent yesterday on the back of decline in ETF gold holdings managed under SPDR Gold Holdings Trust around 0.3 percent to 833.6 tonnes. Further, weak market sentiments also exerted downside pressure on the prices.

Weakness in the DX prevented sharp fall in the prices. The yellow metal touched an intra-day low of $1250.10/oz and closed at $1251.40/oz in yesterday’s trading session.

In the Indian markets, prices slipped by 0.3 percent and closed at Rs.29460/10 gms after touching an intra-day low of Rs.29272/10 gms on Wednesday. Rupee depreciation cushioned sharp fall in prices on the MCX.


Silver

Taking cues from fall in gold prices along with weak market sentiments, Spot silver prices dropped around 0.4 percent yesterday. Further, major reason for fall in prices was due to sharp decline in iShares Silver Trust holdings which slipped around 0.9 percent to 10208.66 tonnes. Weakness in the DX prevented sharp downside in the prices. The white metal touched an intra-day low of $20.19/oz and closed at $20.30/oz in yesterday’s trade.

On the domestic front, prices rose 0.6 percent due to Rupee depreciation and closed at Rs.45730/kg after touching an intra-day high of Rs.45845/kg on Wednesday.


Outlook

In today’s session, we expect precious metals to trade on a negative note in international markets on the back of sharp decline 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.