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Commodities

Gold and silver daily review (July 23, 2012)

July 23, 2012, Monday, 05:28 GMT | 00:28 EST | 08:58 IST | 11:28 SGT
Contributed by Angel Broking


Gold

Spot prices of Gold declined by 0.4 percent in the last week on the back of strength in the Dollar Index (DX) coupled with negative market sentiments in the global economy.

The yellow metal touched a low of $1,565.64/oz and closed at $1582.7/oz in last trading session of the week. However, in the domestic markets MCX Gold August contract settled around same levels as that of previous week. Depreciation in the Indian rupee led MCX Gold prices to close on a positive note at Rs.29,277/10 gms after touching a high of Rs.29,370/10 gms during the week.

On a weekly basis, holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, declined by 1.2 percent and stood at 1654.64 tonnes on July 20, 2012 as compared to 1,269.73 tonnes on July 13, 2012.


Silver

Spot prices of Silver settled at the same levels as that of previous week. However, sharp rise in the Silver prices was capped tracking bearishness in the gold and base metals prices along with strength in the DX.

The white metal touched a weekly high of $27.62/oz and closed at $27.3/oz on Friday. On the domestic front prices depreciation in the Indian Rupee led MCX Silver to settle 0.1 percent higher in the week after touching a high of Rs.53,211/kg.

On a weekly basis, holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, remained unchanged at 9696.71 tonnes on 20th July 2012 same as that of previous week.


Outlook

From the intraday perspective, we expect precious metals to trade with bearish note due to strength in the DX along with bearish global sentiments. However, depreciation in the Indian markets will cushion sharp fall in the precious metals on MCX.