Gold and silver daily review (January 23, 2014)
January 23, 2014, Thursday, 07:13 GMT | 02:13 EST | 12:43 IST | 15:13 SGT
Spot gold prices declined around 0.4 percent yesterday on the back of decline in gold ETF’s holdings managed under SPDR Gold Holdings Trust. The holdings have slipped around 0.2 percent to 795.85 tonnes which is the lowest level since January 2009.
Further, weak market sentiments in later part of the trade coupled with strength in the DX exerted downside pressure on the prices. The yellow metal touched an intra-day low of $1235.70/oz and closed at $1236.10/oz in yesterday’s trading session.
In the Indian markets, prices slipped by 0.3 percent and closed at Rs.29150/10 gms after touching an intra-day low of Rs.29121/10 gms on Wednesday.
Taking cues from fall in gold prices along with downside in base metals complex, Spot silver dropped around 0.6 percent in yesterday session.
Further, strength in the DX along with weak market sentiments acted as a negative factor. The white metal touched an intra-day low of $19.71/oz and closed at $19.73/oz in the yesterday’s trade.
On the domestic front, prices fell by 0.3 percent and closed at Rs.44338/kg after touching an intra-day low of Rs.44200/kg on Wednesday.
In today’s session, we expect precious metals to trade on negative note on the back of decline in gold and silver ETF’s holdings. Further, strength in the DX coupled with weak market sentiments will act as a negative factor. Additionally, concerns of QE tapering by the Federal Reserve will exert downside pressure on the prices.
In the Indian markets, depreciation in the Rupee will cushion sharp downside in the prices.