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Commodities Precious Metals

Gold and silver daily review (December 23, 2013)

December 23, 2013, Monday, 05:22 GMT | 00:22 EST | 09:52 IST | 12:22 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined around 2.8 percent in the last week on the back of sharp decline in SPDR gold holdings by around 1.63 percent to 814.12 tonnes, which is at the lowest level since end of Jan'09. Additionally, strength in the DX acted as a negative factor for the prices.

However, sharp downside in the prices was cushioned due to upbeat market sentiments. The yellow metal touched a weekly low of $1185.1/oz and closed at $1202.64/oz in last trading session of the week.

In the Indian markets, prices slipped around 3 percent due to Rupee appreciation and closed at Rs.28554/10 gms on Friday after touching a low of Rs.28276/10 gms in the last week.


Silver

Taking cues from fall in gold prices along with strength in the DX, Spot silver prices slipped around 1.4 percent in the prior week. Further, declining trend in silver ETF holdings acted as a negative factor. The white metal touched a weekly low of $19.09/oz and closed at $19.37/oz in the last trade of the previous week.

On the domestic front, prices dropped around 1.7 percent due to Rupee appreciation and closed at Rs.44007/kg on Friday after touching a low of Rs.43566/kg in the prior week.


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 will exert downside pressure on precious metals. However, sharp downside will be cushioned due to upbeat market sentiments coupled with weaker DX. In the Indian markets, sharp downside in prices will be seen due to Rupee appreciation.