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Commodities Precious Metals

Gold and silver daily review (December 18, 2013)

December 18, 2013, Wednesday, 06:37 GMT | 01:37 EST | 11:07 IST | 13:37 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined around 0.8 percent yesterday on the back of weak market sentiments coupled with strength in the DX.

Further, decline in ETF gold holdings managed under SPDR Gold Holdings Trust by around 0.2 percent to 816.82 tonnes exerted downside pressure on the prices. The yellow metal touched an intra-day low of $1227.30/oz and closed at $1229.60/oz in yesterday’s trading session.

In the Indian markets, prices dropped around 0.5 percent and closed at Rs.28678/10 gms after touching an intra-day low of Rs.28642/10 gms on Tuesday. Depreciation in the Rupee restricted sharp downside in prices on the MCX.


Silver

Taking cues from fall in gold prices along with strength in the DX, Spot silver prices slipped around 0.4 percent yesterday. Further, weak market sentiments coupled with declining trend in silver ETF holdings acted as a negative factor. The white metal touched an intra-day low of $19.65/oz and closed at $19.90/oz in yesterday’s trade.

On the domestic front, prices dropped around 1.3 percent and closed at Rs.44734/kg after touching an intra-day low of Rs.44580/kg on Tuesday.


Outlook

In today’s session, we expect precious metals to trade on a negative note in international markets on the back of declining trend in gold and silver ETF’s holdings. Further, investors are cautious ahead of the US Federal Reserve meeting today. Additionally, mixed market sentiments along with strength in the DX will act as a negative factor for the prices. In the Indian markets, depreciation in the Rupee will cushion sharp downside in the prices.