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Commodities Precious Metals

Gold and silver daily review (June 12, 2014)

June 12, 2014, Thursday, 06:59 GMT | 01:59 EST | 10:29 IST | 12:59 SGT
Contributed by Angel Broking


Gold

Spot gold prices traded on a flat note yesterday as mild safe haven demand for the yellow metal was seen on the back of sell off in the U.S. stock market and escalating violence and instability in Iraq. Also, short covering and bargain hunting held the prices from falling. Further, the World Bank cutting the global growth forecast for 2014 proved to be somewhat beneficial for the precious metal.

In domestic markets, Trade secretary Rajeev Kher insisted that India needs to rationalise duty on gold imports, which plunged 72 percent in May. Last year, India raised the gold import tax to 10 percent from 4 percent.

On the MCX, gold prices declined by around 0.3 percent and closed at Rs.26073/10gms.


Silver

Silver prices gained 0.1 percent on account of strength in gold prices and traded in a very narrow range. On the other hand, weakness in the base metals complex capped sharp gains in the white metal.

On the MCX, silver prices rose by 0.2 percent taking cues from strong international markets and Rupee depreciation and closed at Rs.40606/kg.


Outlook

On an intraday basis, we expect gold and silver prices are expected to trade positive as the weak market sentiments owing to cut in global growth for 2014 will act 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 cues from international markets.