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Commodities Precious Metals

Gold and silver daily review (July 28, 2014)

July 28, 2014, Monday, 05:11 GMT | 00:11 EST | 08:41 IST | 11:11 SGT
Contributed by Angel Broking


Gold

Spot gold prices fell last week and hit a one-month low as the rebound in equities after receding of tensions in Russia and the Middle East along with positive economic data from the US, China and Euro Zone deterred investors from safe haven buying. Further, China's gold demand slumped 19.4 percent in the first six months of 2014 from year ago amid rising supply and net gold imports from Hong Kong fell to a 17-month low in June to 40.543 tonnes from 52.606 tonnes in May along with decline in SPDR holdings acted as negative factors.

However, sharp losses were cushioned as the situation remained tense in the Middle East with Israel pounding targets across the Gaza Strip saying no ceasefire was near as top U.S. and United Nations diplomats pursued talks on halting the fighting that has claimed more than 600 lives.

In the Indian markets, gold prices fell by around 0.2 percent in the last session taking cues from International markets.


Silver

Silver prices in the international markets fell by 0.6 percent in line with weakness in gold prices. Also, falling interest in the white metal after tensions mellowed down in Ukraine along with declining trend in iShares acted as a negative factor for prices.

On the MCX, silver prices fell by 1.4 percent owing to Rupee appreciation and touched a weekly low of Rs.43728/kg before closing at Rs.44610/kg.


Outlook

On an intraday basis, we expect gold and silver prices to trade lower in today’s session as the improvement in the US economy is likely overweigh safe-haven appeal due to heightened tensions between the West and Russia, and violence in the Middle East.

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