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Commodities Precious Metals

Gold and silver daily review (January 08, 2014)

January 8, 2014, Wednesday, 07:22 GMT | 02:22 EST | 11:52 IST | 14:22 SGT
Contributed by Angel Broking


Gold
 
Spot gold prices declined around 0.5 percent yesterday on the back of declining trend in SPDR gold holdings. Further, strength in the DX exerted downside pressure on the prices.
 
However, sharp downside in the prices was restricted due to upbeat market sentiments in later part of the trade. The yellow metal touched an intra-day low of $1224.59/oz and closed at $1231.50/oz in yesterday’s trading session.
 
In the Indian markets, prices plunged around 0.5 percent due to Rupee appreciation and closed at Rs.28834/10 gms after touching an intra-day low of Rs.28802/10 gms on Tuesday.
 
 
Silver
 
Taking cues from fall in gold prices along with mixed performance in base metals complex, Spot silver prices fell around 1.4 percent yesterday. Further, strength in the DX exerted downside pressure on the prices.
 
Additionally, declining trend in iShares silver holdings acted as a negative factor. The white metal touched an intra-day low of $19.61/oz and closed at $19.90/oz in yesterday’s trade.
 
On the domestic front, prices dropped around 2 percent due to Rupee appreciation and closed at Rs.44526/kg after touching an intra-day low of Rs.44350/kg on Tuesday.
 
 
Outlook
 
Over the trade, we expect precious metals to trade lower on the back of declining trend in gold and silver ETF holdings. Further, strength in the DX will exert downside pressure on the prices. However, sharp downside in the prices will be prevented due to upbeat market sentiments. In the Indian markets, Rupee appreciation will add downside pressure on the prices.