Gold and silver daily review (January 16, 2014)
January 16, 2014, Thursday, 06:05 GMT | 01:05 EST | 10:35 IST | 13:05 SGT
Spot gold prices declined around 0.3 percent yesterday on the back of declining trend in SPDR gold holdings which is at the lowest level since January 2009. Further, strength in the DX exerted downside pressure on the prices.
However, sharp downside in the prices was restricted due to upbeat market sentiments. The yellow metal touched an intra-day low of $1234.0/oz and closed at $1241.42/oz in yesterday's trading session.
In the Indian markets, prices fell by 0.3 percent and closed at Rs.29019/10 gms after touching an intra-day low of Rs.28865/10 gms on Wednesday.
Taking cues from fall in gold prices along with strength in the DX, spot silver prices slipped around 0.3 percent yesterday. Further, declining trend in iShares Silver Trust holdings acted as a negative factor.
However, sharp downside in prices was prevented due to upbeat market sentiments. The white metal touched an intra-day low of $19.90/oz and closed $20.17/oz in the yesterday's trade.
On the domestic front, prices slumped by 0.4 percent and closed at Rs.44785/kg after touching an intra-day low of Rs.44314/kg on Wednesday.
In today's session, we expect precious metals to trade lower on the back of declining trend in gold and silver ETF's holdings. Further, strength in the DX due to concerns of QE tapering by the Federal Reserve will exert downside pressure on the currency. However, sharp downside in the currency will be cushioned due to positive market sentiments. In the Indian markets, appreciation in the Rupee will continue with downside movement in the prices