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Commodities Precious Metals

Gold and silver daily review (February 17, 2014)

February 17, 2014, Monday, 05:02 GMT | 00:02 EST | 09:32 IST | 12:02 SGT
Contributed by Angel Broking


Gold

Spot gold prices increased by more than 4 percent in the last week on the back of rise in gold ETF’s holdings managed under SPDR Gold Holdings Trust by 0.5 percent to 801.25 tonnes. Further, weakness in the DX supported an upside in the prices.

Additionally, upbeat market sentiments acted as a positive factor. The yellow metal touched a weekly high of $1320.90/oz and closed at $1318.50/oz in last trading session of the week.

In the Indian markets, gold prices rose around 2.2 percent in the prior week touching a weekly high of Rs.29425/10 gms and closed at Rs.29375/10 gms on Friday. Rupee appreciation capped sharp gains in the prices on the MCX.


Silver

Taking cues from rise in gold prices, upside in the base metals complex along with weakness in the DX, Spot silver prices rose by more than 7 percent in the last week. Further, upbeat market sentiments acted as a positive factor.

However, sharp upside in the prices was restricted due to decline in iShares Silver Trust Holdings by 0.1 percent to 10030.84 tonnes. The white metal touched a weekly high of $21.47/oz and closed at $21.46/oz in the last trade of the week.

On the domestic front, prices surged by more than 5 percent in the previous week and closed at Rs.46613/kg on Friday after touching a weekly high of Rs.46717/kg. Rupee appreciation capped sharp gains in the prices on the MCX.


Outlook

Gold and silver prices are expected to trade higher today on the back of rising trend in gold and silver ETF’s holdings. Further, upbeat market sentiments coupled with weakness in the DX will act as a positive factor. However, less volatility will be observed as US markets closed today on the eve of Presidents' Day. In the Indian markets, Rupee appreciation will cap sharp gains in the prices.