Gold and silver daily review (January 10, 2014)
January 10, 2014, Friday, 12:37 GMT | 08:37 EST | 18:07 IST | 20:37 SGT
Positive US economic indicators only point towards growth in the US economy and reiterate fears that the Federal Reserve will continue with pulling back stimulus spending.
Other than that, an improving US economy is attracting investors towards high-risk and higher-yielding investment assets, thereby reducing the need for accumulating gold from the safe-haven point of view.
On the back of these factors, we saw that gold prices closed on a flat note of $1227.5/oz, gaining marginally by 0.1 percent. In the Indian markets, prices on the near-month MCX gold contract rose 0.2 percent to close at Rs28,862/10gm.
Movement in silver prices is yesterday’s trade was also restricted as a result of rangebound trade in gold coupled with downside movement in base metal prices.
In intraday trade, prices of silver in dollar terms gained slightly by 0.2 percent to close at $19.5/oz.
On the MCX, silver prices witnessed higher gains to the tune of 0.6 percent and closed at Rs44,124/kg on Thursday.
QE taper concerns are expected to act as a negative factor for gold and silver prices today. Hence, we expect precious metals to trade with a negative bias in today’s trading session.