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Commodities Precious Metals

Gold and silver daily review (June 13, 2014)

June 13, 2014, Friday, 06:31 GMT | 01:31 EST | 10:01 IST | 12:31 SGT
Contributed by Angel Broking


Gold

Gold prices rose on Thursday notching a three week high on short covering and bargain buying at lower levels as has been the case in the past few trading sessions. In addition, escalating violence in Iraq has led to situation of civil war appealing bullions safe haven appeal. Iraq’s ruling government is calling on the U.S. for military aid, although such is not likely. The fear now is that violence in Iraq could spread to other Arab countries which will be supportive for gold prices.

On the MCX, gold prices rose by 1 percent taking strong cues from international markets and closed the session at Rs.26330/10gms.


Silver

Taking cues from strength in gold prices even spot silver prices rose by 1.8 percent and hit a three week high on Thursday on account of short covering and weakness in the dollar index. On the other hand, weakness in copper prices, the indicator of industrial momentum capped sharp gains in prices.

On the MCX, silver prices rose by 1.6 percent and closed at Rs.41251/kg.


Outlook

On an intraday basis, we expect gold and silver prices to trade on a positive note on escalation of violence in Iraq which will be a supportive factor for gold prices. Besides, weakness in the dollar will also act as a positive factor. Renewed interest by the investors in SPDR gold trust will also aid the rise in gold prices in the coming sessions.

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

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