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Commodities Precious Metals

Gold and silver daily review (January 02, 2014)

January 2, 2014, Thursday, 07:13 GMT | 02:13 EST | 11:43 IST | 14:13 SGT
Contributed by Angel Broking


Gold

Spot gold prices traded on a flat note and gained marginally in yesterday’s trading session.

However, sharp upside in the prices was capped due to declining trend in SPDR gold holdings which is at the lowest level since January 2009. Further, less volatility was observed as majority markets were closed yesterday on the eve of New Year’s holiday. The yellow metal touched an intra-day high of $1205.71/oz and closed at $1205.30/oz in yesterday’s trading session.

In the Indian markets, prices traded on a flat note and closed at Rs.28418/10 gms after touching an intra-day low of Rs.28390/10 gms on Wednesday.


Silver

Taking cues from mixed performance in the base metal prices, Spot silver prices dropped around 0.4 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 rise in gold prices. The white metal touched an intra-day low of $19.33/oz and closed at same levels in the yesterday’s trade.

On the domestic front, prices rose around 0.1 percent due to Rupee depreciation and closed at Rs.43876/kg after touching an intra-day high of Rs.44034/kg on Wednesday.


Outlook

In today’s session, we expect precious metals to trade on a positive note on the back of weakness in the DX coupled with positive market sentiments. However, sharp upside will be capped due to declining trend in gold and silver ETF’s holdings. In the Indian markets, Rupee appreciation will restrict sharp positive movement in the prices.