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Commodities Precious Metals

Gold and silver daily review (June 20, 2014)

June 20, 2014, Friday, 15:38 GMT | 10:38 EST | 20:08 IST | 22:38 SGT
Contributed by Angel Broking


Gold

Bullion rose to its highest level in more than two months as Federal Reserve’s lack of commitment to raise interest rates and continues tensions in the Middle East acted as a positive factor. U.S. dollar eased after the Fed signalled on Wednesday it will stick with a near-zero interest rate policy to support the economy, disappointing traders who had bet on hints of policy tightening.

On the MCX, gold prices rose by around 3 percent in line with strength in international markets and closed at Rs27611/10gms.


Silver

Silver gained 4.1 percent to $20.68 an ounce, having earlier hit $20.91, a three-month high. It notched its biggest one-day gain in four months. Silver prices are moving taking strong cues from gold prices as Fed signals that its near zero interest rate policy is going to continue for longer period of time.

On the MCX, silver price rose by 4.5 percent and closed at Rs.44311/kg


Outlook

On an intraday basis, we expect gold and silver prices to trade positive continuing the run-up in the previous session. Fed’s lack of interest to raise interest rates and slow momentum in the US economy has acted as a trigger for traders to push the precious metals higher.

On the MCX, gold and silver price are expected to trade positive in line with strength in international markets.

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