New York: 10:48 || London: 15:48 || Mumbai: 19:18 || Singapore: 21:48

Commodities Precious Metals

Gold and silver daily review (December 16, 2013)

December 16, 2013, Monday, 04:58 GMT | 23:58 EST | 09:28 IST | 11:58 SGT
Contributed by Angel Broking


Gold

Spot gold prices gained around 0.8 percent in the last week on the back of weakness in the DX coupled with upbeat market sentiments in early part of the week.

However, sharp upside in the prices was capped due to concerns of QE tapering by the Federal Reserve in later part of the week. Additionally, decline in ETF gold holdings managed under SPDR Gold Holdings Trust around 1 percent to 827.6 tonnes restricted sharp upside in the prices. The yellow metal touched a weekly high of $1267.26/oz and closed at $1237.80/oz in last trading session of the week.

In the Indian markets, prices rose around 1.7 percent due to Rupee depreciation and closed at Rs.29432/10 gms on Friday after touching a high of Rs.29159/10 gms in the last week.


Silver

Taking cues from rise in gold prices along with upside in base metals complex, Spot silver prices gained around 1 percent in the last week. Further, weakness in the DX supported an upside in the prices. The white metal touched a weekly high of $20.46/oz and closed at $19.70/oz in last trade of the prior week.

On the domestic front, prices jumped around 1.6 percent due to Rupee depreciation and closed at Rs.44776/kg on Friday after touching a high of Rs.45845/kg in the previous week.


Outlook

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