Gold and silver daily review (January 30, 2014)
January 30, 2014, Thursday, 05:56 GMT | 00:56 EST | 11:26 IST | 13:56 SGT
Spot gold prices gained around 1 percent yesterday on the back of rise in SPDR gold holdings by 0.3 percent to 792.56 tonnes. Further, weakness in the DX supported an upside in the prices.
However, weak market sentiments after US Federal Reserve announced another round of QE tapering restricted sharp upside in the prices. The yellow metal touched an intra-day high of $1269.66/oz and closed at $1267.80/oz on in yesterday’s trading session.
On the domestic bourses, the near-month gold contract rose around 0.7 percent and closed at Rs.29738/10gm after touching an intra-day high of Rs.29840/10gm on Wednesday.
Taking cues from rise in gold prices along with weakness in the DX, Spot Silver prices gained around 0.9 percent yesterday. However, downside in base metals complex coupled with weak market sentiments prevented sharp upside in the prices. The white metal touched an intra-day high of $19.96/oz and closed at $19.70/oz in yesterday’s trade.
In the Indian markets, the near-month silver futures contract on the MCX gained around 0.5 percent and closed at Rs.44405/kg after touching an intra-day high of Rs.45074/kg on Wednesday.
Over the trade, we expect precious metals to trade on a mixed note as rise in gold and silver ETF holdings will support an upside in the prices. While on the other hand, weak market sentiments after another round of QE tapering by the Federal Reserve in its meeting yesterday coupled with strength in the DX will exert downside in the prices.
In the Indian markets, Rupee depreciation will cushion sharp downside or support an upside in the prices.