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Commodities Precious Metals

Gold and silver daily review (February 24, 2014)

February 24, 2014, Monday, 06:41 GMT | 01:41 EST | 11:11 IST | 13:41 SGT
Contributed by Angel Broking


Gold

Spot gold prices rose around 0.3 percent last week taking cues from rise in risk appetite in market sentiments in earlier part of the trade.

However, sharp upside in prices was prevented due to decline in gold ETF holdings managed under SPDR Gold Holdings Trust by 0.4 percent to 798.31 tonnes. Further, strength in the DX acted as a negative factor for prices. The yellow metal touched a weekly high of $1332.1/oz and closed at $1323.01/oz in the last trading session.

In the Indian markets, gold prices jumped by 1.7 percent last week owing to Rupee depreciation touching a weekly high of Rs.30260/10 gms and closed at Rs.29889/10 gms on Friday.


Silver

Taking cues from rise in gold and base metal prices, Spot silver prices rose by 1.6 percent in the last week. Further, rise in iShares trust Silver holdings acted as a positive factor.

Additionally, strength in the DX could not push the prices lower. The white metal touched a weekly high of $22.01/oz and closed at $21.81/oz in the last trade.

On the domestic front, prices surged 1.8 percent last week as a result of Rupee depreciation and closed at Rs.47467/kg after touching a weekly high of Rs.48090/kg on Friday.


Outlook

Gold and silver prices are expected to trade on a negative note today on the back of declining trend in gold ETF holdings. Further, weak market sentiments coupled with strength in the DX will exert downside pressure on the prices.

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