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Commodities Precious Metals

Gold and silver daily review (June 11, 2014)

June 11, 2014, Wednesday, 08:47 GMT | 03:47 EST | 12:17 IST | 14:47 SGT
Contributed by Angel Broking


Gold

Spot gold prices rose on Tuesday as the ECB’s unprecedented monetary policy last week has been very positive news for gold as gold prices reacts to the ECB’s balance sheet than to the Federal Reserve’s. However, gold held above its lowest level in four months on expectation that its price declines after a rally in the equity markets might spur purchases.

On the domestic front, gold prices traded positive amid positive sentiments from the global market. On the flip side the forecast of below-average monsoon would hit demand further in the rural areas for the yellow metal.

On the MCX, gold prices gained by 0.6 percent and closed at Rs.26139/10gms.


Silver

Strength in gold prices led to the gains in spot silver prices as it traded in a very narrow range. On the other hand, strength in the dollar index and weakness in the base metals complex capped sharp gains in the metal.

On the MCX, silver prices rose by half a percent taking cues from strong international markets and closed at Rs.40506/kg.


Outlook

On an intraday basis, we expect gold and silver prices to trade positive as the recent bout of selling has given the opportunity for bargain buyers to chip acting as a positive factor. However, sharp gains in prices will be capped on strength in the dollar index and weakness in the base metals complex.

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