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Commodities Precious Metals

Gold and silver daily review (July 24, 2014)

July 24, 2014, Thursday, 06:55 GMT | 01:55 EST | 10:25 IST | 12:55 SGT
Contributed by Angel Broking


Gold

Spot gold prices fell for the second day on Wednesday as gains in U.S. equities and dearth of new developments from conflicts in Ukraine and the Middle East prompted investors take profits.

In addition, the China Gold Association said in a statement that China's gold demand slumped 19.4 percent in the first six months of 2014 from year ago but production rose strongly in the same period as miners ramped up output to protect profit margins. Further, sluggish physical demand in Asia in the seasonally quiet summer period is acting as a negative factor for the yellow metal.

Although, SPDR gold holdings rose for the second day in a row on Wednesday, it could not provide support to the falling prices.

In the Indian markets, gold prices fell by around 0.1 percent in the last session despite Rupee appreciation.


Silver

Silver prices in the international markets traded on a flat note with lack of new developments from the Ukraine and Middle East.

On the MCX, silver prices fell by 0.4 percent taking cues from Rupee appreciation and closed at Rs.45360/kg.


Outlook

On an intraday basis, we expect gold and silver prices to trade lower as the safe-haven demand for gold is muted now as equities are gaining strength and there has been no significant worsening of tensions in the Middle East or Ukraine. Also, favorable Chinese manufacturing data that led to gain in Asian markets will act as a negative factor for prices.

On the MCX, gold and silver prices are expected to trade lower taking cues from international markets.

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