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Commodities Precious Metals

Gold and silver daily review (June 03, 2014)

June 3, 2014, Tuesday, 10:51 GMT | 05:51 EST | 15:21 IST | 17:51 SGT
Contributed by Angel Broking


Gold

Spot gold prices continues to trade lower for consecutive fifth session in a row as equities in the US hits record highs reducing bullion safe haven appeal. Investors also were at bay ahead of the latest ECB policy meeting due on Thursday and lot of key data to be released from the US this week.

Meanwhile, On Friday, U.S. non-farm payrolls data, the official monthly reading on the labor market in the world's largest economy, will be released. The ECB meeting and the non-farm pay rolls will be closely watched by gold traders for their impact on currencies and U.S. monetary policy.

Besides, Hedge funds and money managers cut their bullish wagers on U.S. gold futures and options to the lowest in nearly four months according to the data released last Friday by CFTC.

On the MCX, gold prices declined by more than half a percent and closed at Rs.26701/10gms.


Silver

Spot silver prices in the international markets gained by 0.2 percent diverging from the weakness in gold prices. Strength in silver prices was due to strong performance in the overall base metals complex. Besides, the manufacturing data from the US showed signs of increasing industrial activity in turn supporting prices.

On the MCX, silver prices gained marginally by 0.1 percent and closed at Rs.39626/kg.


Outlook

On an intraday basis, we expect gold and silver prices to trade sideways as prices have been in a declining trend for quite some time now. Further weakness will result in bargain buying by investors and traders at lower levels in turn acting as a positive factor. On the other hand, physical demand for gold remains weak in China as bank remains adequately stocked from last year’s record imports.

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

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