Gold and silver daily review (January 21, 2014)
January 21, 2014, Tuesday, 06:24 GMT | 01:24 EST | 10:54 IST | 13:24 SGT
Spot gold prices trading on a flat note and gained marginally due to rise in gold ETF’s which is managed under SPDR Gold Holdings Trust. Gold holdings saw a sudden jump of 7.5 tonnes or 1 percent on Friday and stood at 797.05 tonnes. Further, upbeat market sentiments coupled with weakness in the DX supported an upside in the prices.
However, sharp upside in the prices was restricted as less volatility was observed as US banks were closed yesterday on eve of Martin Luther King Day. The yellow metal touched an intra-day high of $1259.85/oz and closed at $1253.20/oz in yesterday’s trading session.
In the Indian markets, prices rose by 0.1 percent due to Rupee depreciation and closed at Rs.29288/10 gms after touching an intra-day high of Rs.29390/10 gms on Monday.
Taking cues from mixed performance in base metals complex along with flat trading in gold prices, Spot silver traded on a flat note and gained marginally in yesterday’s trade. Further, optimistic market sentiments coupled with weakness in the DX acted as a positive factor. Additionally, iShares Silver Trust Holdings saw an increase of 1.4 percent to 10029.22 tonnes on Friday which continued with positive movement in the prices.
However, sharp upside in the prices was prevented as less volatility was observed as US banks were closed yesterday on eve of Martin Luther King Day. The white metal touched an intra-day high of $20.41/oz and closed at $20.30/oz in the yesterday’s trade.
On the domestic front, prices fell by 0.2 percent and closed at Rs.45024/kg after touching an intra-day low of Rs.44955/kg on Monday.
In today’s session, we expect precious metals to trade mixed note on the back of rise in gold and silver ETF’s holdings will support an upside in the prices. Further, upbeat market sentiments will act as a positive factor. While on the other hand, strength in the DX will exert downside pressure on the prices. In the Indian markets, appreciation in the Rupee will cap sharp upside in the prices.