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Commodities Precious Metals

Gold and silver daily review (July 09, 2014)

July 9, 2014, Wednesday, 05:21 GMT | 00:21 EST | 08:51 IST | 11:21 SGT
Contributed by Angel Broking


Gold

Spot gold prices continue to trade lower on Tuesday as investors awaited clear signs from the U.S. Federal Reserve that it is on track to raise U.S. interest rates next year. Prices turned lower after U.S. Fed policymaker Jeffrey Lacker said he sees inflation firming this year.

Lack of support from physical markets could weigh on prices, however, tensions in the Middle East and Ukraine are ensuring that there is still some demand for gold as insurance against geopolitical risk.

On the MCX, gold prices gained marginally by 0.11 percent in contrary to the decline in international markets and closed at Rs.27519/10gms.


Silver

Spot silver prices traded lower for second consecutive session on weakness in bullion prices as investors await release of minutes from the Fed's June policy meeting on Wednesday to gauge the central bank's view on interest rates and economic strength. However, weakness in the DX and strength in Nickel prices cushioned sharp downside.

On the MCX, silver prices gained marginally by 0.1 percent in contrary to the fall in international markets.


Outlook

On an intraday basis, we expect the precious metals pack to take cues from the release of the Federal Reserve minutes of the meeting tonight which is expected to give signals on interest rates in the US. In addition, weak physical demand is acting as a negative factor and exerting downside pressure on prices.

On the MCX, precious metals are expected to trade sideways in line with sideways trade in international markets.