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Commodities Precious Metals

Gold and silver daily review (February 20, 2014)

February 20, 2014, Thursday, 05:45 GMT | 00:45 EST | 11:15 IST | 13:45 SGT
Contributed by Angel Broking


Gold

Spot gold prices fell around 0.7 percent yesterday taking cues from decline in gold ETF holdings managed under SPDR Gold Holdings Trust by 0.7 percent to 795.61 tonnes. Further, strength in the DX exerted downside pressure on the prices.

Additionally, weak market sentiments in later part of the trade acted as a negative factor. The yellow metal touched an intra-day low of $1308.44/oz and closed at $1311.30/oz in yesterday's trading session.

In the Indian markets, gold prices slipped around 0.6 percent yesterday touching an intra-day low of Rs.29752/10 gms and closed at Rs.30031/10 gms on Wednesday.


Silver

Taking cues from fall in gold prices along with strength in the DX, Spot silver prices dropped more than 1.5 percent yesterday. Further, weak market sentiments in later part of the trade acted as a negative factor.

However, further downside in the prices was prevented due to rise in iShares Silver Trust Holdings by 1.2 percent to 10150.51 tonnes. The white metal touched an intra-day low of $21.35/oz and closed at $21.50/oz in the yesterday's trade.

On the domestic front, prices slipped 0.5 percent yesterday and closed at Rs.47787/kg after touching an intra-day low of Rs.47381/kg on Wednesday.


Outlook

Gold and silver prices are expected to trade lower today on the back of weak market sentiments. Further, strength in the DX will act as a negative factor. Decline in gold ETF holdings will exert downside pressure on the prices.

In the Indian markets, Rupee depreciation will cushion sharp downside in the prices.

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