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Commodities Precious Metals

Gold and silver daily review (January 01, 2014)

January 1, 2014, Wednesday, 05:17 GMT | 00:17 EST | 09:47 IST | 12:17 SGT
Contributed by Angel Broking


Gold

Spot gold prices gained around 0.7 percent yesterday on the back of upbeat market sentiments.

However, sharp upside in the prices was capped due to strength in the DX coupled with declining trend in SPDR gold holdings. The yellow metal touched an intra-day high of $1213.60/oz and closed at $1204.90/oz in yesterday’s trading session.

In the Indian markets, prices gained around 0.2 percent and closed at Rs.28422/10 gms after touching an intra-day high of Rs.28578/10 gms on Tuesday. Rupee appreciation capped sharp gains in prices on the MCX.


Silver

Taking cues from strength in the DX coupled with mixed performance in the base metal prices, Spot silver prices dropped around 0.7 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. The white metal touched an intra-day low of $18.80/oz and closed at $19.40/oz in the yesterday’s trade.

On the domestic front, prices slumped around 0.8 percent due to Rupee appreciation and closed at Rs.43833/kg after touching an intra-day low of Rs.42435/kg on Tuesday.


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, less volatility will be observed due to major markets closed today on the eve of New Year’s holiday. In the Indian markets, Rupee appreciation will add downside pressure in the prices.