Gold and silver daily review (January 29, 2014)
January 29, 2014, Wednesday, 05:34 GMT | 00:34 EST | 11:04 IST | 13:34 SGT
Spot gold prices traded on a flat note yesterday ahead of the Federal Reserve meeting wherein the course of further QE will be decided. Further, mixed global market sentiments along with strength in the DX exerted downside pressure on prices.
Also, declining trend in SPDR gold holdings acted as a negative factor. The yellow metal touched an intra-day low of $1248.9/oz and closed at $1256.1/oz on Tuesday.
In intraday trade yesterday, the near-month MCX gold contract plunged around 1 percent to close at Rs.29521/10gm after touching an intra-day low of Rs.29470/10gm.
Taking cues from fall in base metals complex, Spot Silver prices declined by 0.7 percent yesterday. Also, mixed global market sentiments along with strength in the DX exerted downside pressure on prices. The white metal touched an intra-day low of $19.42/oz and closed at $19.6/oz on Tuesday.
In the Indian markets, the near-month silver futures contract on the MCX slumped more than 2 percent on account of Rupee appreciation. Prices on the MCX closed at Rs.44169/kg after touching a low of Rs.44127/kg during yesterday’s trade.
Over the trade, we expect precious metals to trade lower as investors remain cautious ahead of the US Federal Reserve meeting today. Further, declining trend in gold and silver ETF’s holdings will exert downside pressure on the prices. However, sharp downside in prices will be prevented due to mixed market sentiments.
In the Indian markets, Rupee appreciation will exert downside pressure on the prices.