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Commodities Precious Metals

Gold and silver daily review (December 26, 2013)

December 26, 2013, Thursday, 06:06 GMT | 01:06 EST | 10:36 IST | 13:06 SGT
Contributed by Angel Broking


Gold

Spot gold prices gained around 0.4 percent on Tuesday on the back of upbeat market sentiments.

However, sharp upside in the prices was capped due to strength in the DX coupled with declining trend in the SPDR gold holdings. The yellow metal touched an intra-day high of $1205.4/oz and closed at $1203.40/oz on Tuesday.

In the Indian markets, prices rose around 0.3 percent and closed at Rs.28454/10 gms after touching an intra-day high of Rs.28479/10 gms on Tuesday. Rupee appreciation capped sharp gains in prices on the MCX.


Silver

Taking cues from strength in the DX coupled with decline in iShares Trust Holdings of 1.3 percent to 10009.54 tonnes, Spot silver prices declined around 0.4 percent on Tuesday. However, sharp downside in prices was cushioned due to rise in gold prices along with positive trend in base metals. The white metal touched an intra-day low of $19.28/oz and closed at $19.40/oz on Tuesday.

On the domestic front, prices dropped gained around 0.2 percent and closed at Rs.43992/kg after touching an intra-day high of Rs.44150/kg on Tuesday. Rupee appreciation restricted positive movement in the prices on the MCX.


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. However, sharp downside will be cushioned due to upbeat market sentiments coupled with weaker DX. Also, less volatility will be observed as UK and European markets closed today on eve of Boxing Day holiday. In the Indian markets, sharp downside in prices will be seen due to Rupee appreciation.