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Commodities Precious Metals

Gold and silver daily review (March 04, 2014)

March 4, 2014, Tuesday, 08:57 GMT | 03:57 EST | 13:27 IST | 15:57 SGT
Contributed by Angel Broking


Gold

Spot gold prices rose around 1.8 percent yesterday taking cues from rising trend in gold ETF holdings managed under SPDR Gold Holdings Trust. Further, rise in safe haven demand due to geopolitical tensions between Ukraine and Russia supported an upside in the prices.

However, strength in the DX along with weak market sentiments failed to add downside pressure on the prices. The yellow metal touched an intra-day high of $1354.80/oz and closed at $1350.30/oz in yesterday’s trading session.

In the Indian markets, gold prices jumped by 1.8 percent yesterday due to Rupee depreciation touching an intra-day high of Rs.30660/10 gms and closed at Rs.30631/10 gms on Monday.


Silver

Taking cues from rise in gold prices, Spot silver prices rose around 1.0 percent yesterday. Further, rising trend in iShares Silver Trust Holdings supported an upside in the prices

However, strength in the DX, weak market sentiments along with mixed performance in base metals complex capped sharp gains in the prices. The white metal touched an intra-day high of $21.70/oz and closed at $21.40/oz in yesterday’s trade.

On the domestic front, prices jumped around 1.8 percent yesterday due to Rupee depreciation and closed at Rs.47186/kg after touching an intra-day high of Rs.46740/kg on Monday.


Outlook

Gold and silver prices are expected to trade on a mixed note today on the back of recovery in gold and silver ETF’s holdings will support an upside in the prices. Further, geopolitical tension between Ukraine and Russia will lead to rise in safe haven demand which will act as a positive factor. While on the other hand, weak market sentiments along with strength in the DX will cap sharp gains or even reversal in the prices. In the Indian markets, depreciation in the Rupee will support an upside in the prices.