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Commodities Precious Metals

Gold and silver daily review (January 09, 2014)

January 9, 2014, Thursday, 16:57 GMT | 11:57 EST | 21:27 IST | 23:57 SGT
Contributed by Angel Broking


Gold
 
Spot gold prices declined around 0.5 percent yesterday on the back of decline in SPDR gold holdings by 0.2 percent to 793.12 tonnes which is at the lowest level since January 2009. Further, strength in the DX exerted downside pressure on the prices.
 
Additionally, hints of QE tapering by the Federal Reserve in its minutes yesterday exerted downside pressure on the prices. The yellow metal touched an intra-day low of $1218.44/oz and closed at $1225.70/oz in yesterday’s trading session.
 
In the Indian markets, prices plunged around 0.1 percent and closed at Rs.28796/10 gms after touching an intra-day low of Rs.28671/10 gms on Wednesday.
 
 
Silver
 
Taking cues from fall in gold prices along with downside in base metals complex, Spot silver prices fell around 1.8 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 $19.28/oz and closed at $19.50/oz in yesterday’s trade.
 
On the domestic front, prices dropped around 1.5 percent and closed at Rs.43869/kg after touching an intra-day low of Rs.43600/kg on Wednesday.
 
 
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. Additionally, weak market sentiments due to concerns of QE tapering by the Federal Reserve will act as a negative factor. In the Indian markets, Rupee depreciation will cushion sharp downside in the prices.