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Commodities » Precious Metals

Gold and silver daily review (January 20, 2014)

January 20, 2014, Monday, 06:01 GMT | 01:01 EST | 11:31 IST | 14:01 SGT
Contributed by Angel Broking


Gold
 
Spot gold prices gained around 0.5 percent in the last week on the back of sharp rise in gold ETF's which is managed under SPDR Gold Holdings Trust. Gold holdings was seen on a declining trend for most of the week but in the later part of the week a sharp rise of 7.5 tonnes or 1 percent was seen on Friday and stood at 797.05 tonnes.
 
However, sharp upside in the prices was restricted due to strength in the DX coupled with concerns of QE tapering by the Federal Reserve. The yellow metal touched a weekly high of $1255.0/oz and closed at $1253.33/oz in last trading session of the week.
 
In the Indian markets, prices rose by 0.8 percent and closed at Rs.29265/10 gms on Friday after touching a high of Rs.29314/10 gms in the prior week.
 
 
Silver
 
Taking cues from rise in gold prices along with upside in the base metals complex, Spot silver prices gained around 0.7 percent in the last week. Further, optimistic market sentiments acted as a positive factor.
 
However, sharp upside in the prices was prevented due to strength in the DX coupled with declining trend in IShares Silver Trust Holdings. The white metal touched a weekly high of $20.58/oz and closed $20.26/oz in the last trade of the week.
 
On the domestic front, prices rose by 0.7 percent and closed at Rs.45136/kg on Friday after touching a high of Rs.45600/kg in the previous week.
 
 
Outlook
 
In today's session, we expect precious metals to trade mixed note on the back of rise in gold ETF's holdings will support an upside in the prices. While on the other hand, weak market sentiments due to concerns of QE tapering by the Federal Reserve and weak economic data from China will exert downside pressure on the prices. Further, strength in the DX will act as a negative factor. In the Indian markets, depreciation in the Rupee will support an upside in the prices.