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Commodities Precious Metals

Gold and silver daily review (February 04, 2014)

February 4, 2014, Tuesday, 05:19 GMT | 00:19 EST | 09:49 IST | 12:19 SGT
Contributed by Angel Broking


Gold
 
Spot gold prices gained by more than 1 percent yesterday on the back of recovery in the gold ETF’s holdings managed under SPDR Gold Holdings Trust. Further, weakness in the DX acted as a positive factor.
 
However, sharp upside in the prices was prevented due to weak market sentiments. The yellow metal touched an intra-day high of $1266.10/oz and closed at $1257.20/oz on in yesterday’s trading session.
 
On the domestic bourses, the near-month gold contract rose around 1.3 percent and closed at Rs.29845/10gms after touching an intra-day high of Rs.29885/10gm on Monday.
 
 
Silver
 
Taking cues from rise in gold prices along with weakness in the DX, Spot Silver prices jumped by more than 1 percent yesterday. Further, rise in iShares Silver Trust Holdings acted as a positive factor.
 
However, sharp upside movement in the prices was prevented due to weak market sentiments. The white metal touched an intra-day high of $19.61/oz and closed at $19.30/oz in yesterday’s trade.
 
In the Indian markets, the near-month silver futures contract on the MCX rose around 1.3 percent and closed at Rs.43858/kg after touching an intra-day high of Rs.44150/kg on Monday.
 
 
Outlook
 
Over the trade, we expect precious metals to trade on a negative note as a result of weak market sentiments. Further, strength in the DX will exert downside pressure on the prices. However, sharp downside in the prices will be prevented due to rise in gold and silver ETF holdings.
 
In the Indian markets, Rupee depreciation will cushion sharp downside pressure on the prices.