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Commodities Precious Metals

Gold and silver daily review (June 24, 2014)

June 24, 2014, Tuesday, 06:33 GMT | 01:33 EST | 10:03 IST | 12:33 SGT
Contributed by Angel Broking


Gold

Spot gold prices continued its positive run on Monday on weak US equities and increasing violence in Iraq. The metal hovered near its two-month high of $1,321.90 after posting its biggest weekly gain in three months last week.

The yellow metal extended last week's 3 percent gain as Iran's supreme leader accused the United States on Sunday of trying to retake control of Iraq by exploiting sectarian rivalries, as Sunni insurgents drove toward Baghdad from new strongholds along the Syrian border.

On the MCX, gold prices rose by 0.04 percent taking cues from international markets and closed at Rs.27678/10gms.


Silver

Silver prices declined on Monday diverging from gains in gold prices as weakness in Nickel prices and profit booking at higher levels acted as a negative factor. Weakness in the dollar index however cushioned sharp downside in prices.

On the MCX, silver prices declined by 0.3 percent and closed at Rs.44445/kg.


Outlook

On an intraday basis, we expect bullion prices to trade sideways as account of profit booking at higher levels will lead to lower prices. In addition, the existing home sales data released last night shows that housing sector is gaining momentum acting as a negative factor. On the other hand, escalating violence in Iraq will cushion sharp downside.

On the MCX, gold prices are expected to trade lower in line with international markets.