New York: 17:01 || London: 22:01 || Mumbai: 01:31 || Singapore: 04:01

Commodities Precious Metals

Gold and silver daily review (June 18, 2014)

June 18, 2014, Wednesday, 05:45 GMT | 00:45 EST | 09:15 IST | 11:45 SGT
Contributed by Angel Broking


Gold

Spot gold prices ended lower on Tuesday retreating from a three week high on strength in dollar index and ease of tensions between the Middle East and the west reducing bullions safe haven appeal.

Although reading for consumer prices was higher it did not aid any sentiment for gold prices, while strength in the dollar on hopes that the Federal Reserve in its monetary policy meeting on Wednesday would head for more monetary tightening acted as a negative factor.

On the MCX, gold prices headed higher and marginally gained by 0.03 percent to close at Rs.26839/10 gms.


Silver

Spot silver prices traded higher and gained half a percent to close at $19.7 as prices diverged from strength in gold prices. Silvers appeal as a speculative investment is driving traders to buy this grey metal and increasing interest by hedge funds to hold the metal being the prime reason for positivity in prices.

On the MCX, silver prices rose by 0.4 percent and closed at Rs.42374/kg.


Outlook

On an intraday basis, we expect gold prices to trade sideways to lower as profit booking seems at the top of agenda for traders. Besides, traders will remain at bay as the outcome of the Federal Reserve meeting tonight will decide the course of bullion prices in the coming session.

On the other side, violence in Iraq, geo-political tensions between Russia and Ukraine will continue to make headlines in turn the trajectory of precious metals prices.

On the MCX, gold and silver prices will trade sideways in line with international markets.

Stock Market Forum