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Commodities Precious Metals

Gold and silver daily review (December 19, 2013)

December 19, 2013, Thursday, 06:09 GMT | 01:09 EST | 10:39 IST | 13:09 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined around 1 percent yesterday on the back of decline in SPDR gold holdings by 0.5 percent to 812.62 tonnes. Additionally, strength in the DX acted as a negative factor for the prices.

Further, investors reacted positively to the QE tapering by the Federal for $10 billion out of total $85 billion stimulus measures but were not able to provide respite to fall in the prices. The yellow metal touched an intra-day low of $1215.7/oz and closed at $1217.60/oz in yesterday’s trading session.

In the Indian markets, prices gained around 0.7 percent due to Rupee depreciation and closed at Rs.28868/10 gms after touching an intra-day high of Rs.28920/10 gms on Wednesday.


Silver

Taking cues from fall in gold prices along with strength in the DX, Spot silver prices slipped around 0.8 percent yesterday. Further, declining trend in silver ETF holdings acted as a negative factor. The white metal touched an intra-day low of $19.62/oz and closed at $19.70/oz in yesterday’s trade.

On the domestic front, prices rose around 1.4 percent due to Rupee depreciation and closed at Rs.45348/kg after touching an intra-day high of Rs.45475/kg on Wednesday.


Outlook

In today’s session, we expect precious metals to trade on a negative note on the back of declining trend in gold and silver ETF’s holdings. Further, US Federal began its QE tapering program for $10 billion out of the total $85 billion stimulus package which exerted downside pressure on precious metals in yesterday’s trade and will continue to trade lower in today’s trading session. However, sharp downside will be restricted due to upbeat market sentiments coupled with weakness in the DX.