New York: 20:41 || London: 01:41 || Mumbai: 05:11 || Singapore: 07:41

Commodities Precious Metals

Gold and silver daily review (July 10, 2014)

July 10, 2014, Thursday, 11:20 GMT | 06:20 EST | 14:50 IST | 17:20 SGT
Contributed by Angel Broking


Gold

Spot gold prices rose on Wednesday as the U.S. Federal Reserve's latest meeting minutes did not suggest any hike in U.S. interest rates soon. Prices traded near one week high as the world's largest gold exchange-traded fund, the SPDR Gold Trust reported a second straight session of inflows that took its holdings above 800 tonnes the first time since mid-April.

The gains came on anticipation that the Fed's June meeting minutes would not reveal any significant change in thinking on monetary policy, meaning the central bank was not ready to raise interest rates or hasten the rollback of stimulus measures. Further, the Fed may end its bond buying program after its October meeting if "certain economic conditions remain positive", the minutes said.

On the MCX, gold prices gained by 0.34 percent and closed at Rs.27613/10gms.


Silver

Spot silver prices have been moving in tandem with gold prices and this positive move continued in yesterday’s session as the Fed did not hint about rise in interest rates in the US. Weakness in the dollar index boosted the rally further. However, decline in Nickel prices and the weakness in the overall base metal pack capped the rally.

On the MCX, silver prices declined in contrary to the gains in international markets and closed at Rs.44787/kg


Outlook

On an intraday basis, we expect gold and silver prices to trade higher as Fed’s is not likely to raise the interest rates soon, although it plans to end the bond buying programme after its October meeting if the economic conditions permit. However, weakness in the DX and increase in the investment flows will act as a positive factor.

On the MCX, gold prices are expected to trade on a positive note in line with strength in international markets.