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Commodities Precious Metals

Gold and silver daily review (December 31, 2013)

December 31, 2013, Tuesday, 05:37 GMT | 00:37 EST | 10:07 IST | 12:37 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined around 1.4 percent yesterday on the back of decline in gold ETF’s managed under SPDR Gold Holdings Trust by 0.4 percent to 798.22 tonnes which is at lowest level since January 2009.

However, sharp downside in the prices was cushioned due to upbeat market sentiments coupled with weakness in the DX. The yellow metal touched an intra-day low of $1194.99/oz and closed at $1196.0/oz in yesterday’s trading session.

In the Indian markets, prices slipped around 0.7 percent and closed at Rs.28359/10 gms after touching an intra-day low of Rs.28331/10 gms on Monday.


Silver

Taking cues from fall in gold prices coupled with downside in the base metal prices, Spot silver prices dropped around 2.4 percent yesterday. Further, declining trend in silver ETF holdings exerted downside pressure on the prices.

However, sharp downside in the prices was restricted due to upbeat market sentiments coupled with weakness in the DX. The white metal touched an intra-day low of $19.45/oz and closed at $19.60/oz in the yesterday’s trade.

On the domestic front, prices slumped around 2.1 percent and closed at Rs.44203/kg after touching an intra-day low of Rs.44127/kg on Monday.


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