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Commodities Precious Metals

Gold and silver daily review (January 24, 2014)

January 24, 2014, Friday, 04:51 GMT | 23:51 EST | 09:21 IST | 11:51 SGT
Contributed by Angel Broking

Spot gold prices gained around 2.3 percent yesterday on the back of weakness in the DX.
Further, decline in gold ETF’s holdings managed under SPDR Gold Holdings Trust exerted downside pressure on the prices. The holdings have slipped around 0.7 percent to 790.46 tonnes which is the lowest level since January 2009. The yellow metal touched an intra-day high of $1265.4/oz and closed at $1264.0/oz in yesterday’s trading session.
In the Indian markets, prices rose by 0.7 percent and closed at Rs.29355/10 gms after touching an intra-day high of Rs.29389/10 gms on Thursday.
Taking cues from rise in gold prices along with weakness in the DX, Spot silver gained around 1.3 percent in yesterday session.
However, downside in base metals complex coupled with mixed market sentiments capped sharp gains in the prices. The white metal touched an intra-day high of $20.29/oz and closed at $20.0/oz in the yesterday’s trade.
On the domestic front, prices rose by 1.3 percent and closed at Rs.44910/kg after touching an intra-day high of Rs.45180/kg on Thursday.
In today’s session, we expect precious metals to trade on higher note due to technical reasons as internationally prices have hovered above the $1250/oz in case of gold and silver prices closing above $20/oz indicating a positive trend in the commodity.
However, on fundamental front a bearish view can still be seen due to declining trend 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 fall on support an upside in the prices.