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Commodities Precious Metals

Gold and silver daily review (June 04, 2014)

June 4, 2014, Wednesday, 06:07 GMT | 01:07 EST | 10:37 IST | 13:07 SGT
Contributed by Angel Broking


Gold

On Tuesday, spot gold prices rose for the first time in last six trading sessions as stock markets in US corrected after a series of record highs on Wall Street. However, he precious metal may still correct in the coming session due to uncertainties ahead of Thursday's European Central Bank policy meeting and a huge decline in investor interest in the futures market.

In addition, the U.S. economic data showing a third straight month of gains for new factory orders which will exert downside pressure on prices.

On the MCX, gold prices gained marginally by 0.13 percent and closed at Rs.26735/10 gms.


Silver

Strength in gold prices, correction in US equities led to rise in spot silver prices as it gained by 0.3 percent and closed at $18.8/oz. In addition, investors renewed interest and bargain buying supported the prices.

On the MCX, silver prices rose marginally by 0.4 percent and closed at Rs.39773/kg.


Outlook

On an intraday basis, we expect the weakness in gold and silver prices to continue as the outcome of the ECB meeting will provide hints where gold prices are headed. In addition, the jobs market scenario in the US will also act as a crucial factor for gold prices from here on.

On the MCX, gold prices are expected to trade on a weak note taking cues from international markets.

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