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Commodities Precious Metals

Gold and silver daily review (July 03, 2014)

July 3, 2014, Thursday, 04:39 GMT | 23:39 EST | 08:09 IST | 10:39 SGT
Contributed by Angel Broking


Gold

Spot gold prices gained marginally by 0.13 percent on Wednesday although the report from Automatic Data Processing (ADP) showed that U.S. private sector employers added 281,000 jobs in June. However, for most part of the session, the metal largely traded positive as investors were reluctant to sell ahead of the long holiday weekend.

Weak dollar and continuous second day of inflows in to SPDR Gold Trust, the world's largest gold-backed exchange-traded fund led to the rally. Holdings rose by 5.69 tonnes to 796.39 tonnes on Tuesday.

On the MCX, gold prices declined by 0.30 percent and closed at Rs.27663/10 gms.


Silver

Spot silver prices rose by 0.4 percent on Wednesday on weakness in the dollar index and strength in the base metals complex. Besides, speculative interest in the commodity also seems to be rising in silver lifting prices.

On the MCX, silver prices gained by around 1 percent in line with strength in international markets and closed at Rs.44715/kg.


Outlook

On an intraday basis, we expect gold and silver to trade sideways as traders remain at bay before the outcome of key data released tonight. The ADP data released last night has reinforced the view that labor market is growing in the US and the momentum is building to carry the optimism through the rest of the year. Meanwhile, U.S. data on jobs, unemployment and trade is expected tonight, while the outcome of European Central Bank policy meeting will also be announced. Weaker-than-expected data and continued stimulus measures would keep gold prices supported.

On the MCX, gold prices are expected to trade sideways as markets remain cautious to the outcome of the data sets mentioned above.