Gold and silver daily review (January 13, 2014)
January 13, 2014, Monday, 05:24 GMT | 00:24 EST | 10:54 IST | 13:24 SGT
Spot gold prices gained around 0.9 percent in the last week as the hedge funds raised their bullish bets to a six week high. Also, the appointment of new Federal Reserve Chief Janet Yellen, who is known to be supportive towards stimulus spending, will continue to be positive ahead of the FOMC meet scheduled for 28-29th Jan’14. Additionally, weakness in the DX acted as a supportive factor.
Ease of concerns in QE taper after employment data on Friday acted as a positive factor. The yellow metal touched a weekly high of $1248.41/oz and closed at $1246.7/oz in last trading session of the week.
In the Indian markets, prices fell by 0.4 percent owing to Rupee appreciation and closed at Rs.29033/10 gms on Friday.
Spot silver prices traded on a flat note in the prior week and gained marginally due to upside in the gold prices along with weaker DX.
While on the other hand, downside in the base metals complex along with decline in silver holdings exerted downside pressure on the prices. The white metal touched a weekly low of $19.53/oz and closed $20.11/oz in the last trade of the week.
On the domestic front, prices slumped by 1.4 percent due to Rupee appreciation and closed at Rs.44824/kg on Friday after touching a weekly low of Rs.43600/kg.
In today’s session, we expect precious metals to trade higher on the back of ease in concerns of QE tapering by the Federal Reserve which will lead to positive market sentiments. Further, weakness in the DX will support an upside in the prices. However, sharp upside in the prices will be capped due to declining trend in gold and silver ETF’s holdings. In the Indian markets, appreciation in the Rupee will restrict sharp positive movement in the prices.