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Commodities Precious Metals

Gold and silver daily review (January 22, 2014)

January 22, 2014, Wednesday, 06:12 GMT | 01:12 EST | 11:42 IST | 14:12 SGT
Contributed by Angel Broking


Gold
 
Spot gold prices declined around 1 percent yesterday on the back of concerns of QE tapering by the Federal Reserve coupled with mixed market sentiments.
 
However, sharp downside in the prices was restricted due to weakness in the DX along with rising trend in SPDR Gold Holdings Trust. The yellow metal touched an intra-day low of $1235.68/oz and closed at $1241.10/oz in yesterday’s trading session.
 
In the Indian markets, prices slipped by 0.2 percent and closed at Rs.29241/10 gms after touching an intra-day low of Rs.29130/10 gms on Tuesday. Rupee depreciation prevented sharp fall in the prices on the MCX.
 
 
Silver
 
Taking cues from fall in gold prices, Spot silver dropped around 2 percent yesterday.
 
However, sharp downside in the prices was prevented due to weakness in the DX along with positive trend in iShares Silver Trust holdings. The white metal touched an intra-day low of $19.65/oz and closed at $19.9/oz in the yesterday’s trade.
 
On the domestic front, prices fell by 1.2 percent and closed at Rs.44480/kg after touching an intra-day low of Rs.44140/kg on Tuesday. Rupee depreciation prevented sharp fall in the prices on the MCX.
 
 
Outlook
 
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, weakness in the DX will act as a positive factor. While on the other hand, mixed market sentiments in the DX will exert downside pressure on the prices. In the Indian markets, depreciation in the Rupee will support an upside in the prices.