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Commodities Precious Metals

Gold and silver daily review (June 26, 2014)

June 26, 2014, Thursday, 04:44 GMT | 23:44 EST | 08:14 IST | 10:44 SGT
Contributed by Angel Broking


Gold

Spot gold prices rose on Wednesday as US growth data came in weaker than expected. Bullions failure to extend gains indicates that investors are taking profits off the table after prices hit a two month high in the previous session.

The yellow metal's appeal as a hedge increased after data showed the U.S. economy contracted at a much steeper pace in the first quarter than previously estimated, turning in one of its worst-ever non-recession performances. Bullion prices rose on fears the Iraq conflict could escalate and a perceived lack of commitment by the Federal Reserve to raise interest rates, triggering a heavy bout of short covering.

On the MCX, gold prices rose by 0.07 percent and closed at Rs.27751/10 gms


Silver

Spot silver prices rose by 0.5 percent on Wednesday in line with strength in bullion prices. Slow growth in the US has raised speculators interest in this metal acting as a positive factor. Also weakness in the dollar index led to gains.

On the MCX, silver prices rose by 0.4 percent in line with strength in international markets and closed at Rs.44653/kg.


Outlook

On an intraday basis, gold and silver prices are expected to trade sideways as better housing data from the US and the consumer confidence data which represent two third of the US economy marked a positive sentiment while the slowdown in growth in the US will raise bullions safe haven appeal acting as a positive factor. On the other hand, escalating tensions in Iraq will support bullion prices.

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

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