New York: 18:33 || London: 23:33 || Mumbai: 04:03 || Singapore: 06:33

Commodities Precious Metals

Gold and silver daily review (March 05, 2014)

March 5, 2014, Wednesday, 08:21 GMT | 03:21 EST | 13:51 IST | 16:21 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined by more than 1 percent yesterday taking cues from fall in safe haven demand due to ease of geopolitical tensions between Ukraine and Russia. Further, strength in the DX exerted downside pressure on the prices.

However, upbeat market sentiments coupled with recovery in SPDR Gold Trust Holdings failed to provide respite to fall in the prices. The yellow metal touched an intra-day low of $1331.4/oz and closed at $1334.50/oz in yesterday’s trading session.

In the Indian markets, gold prices dropped by 1.5 percent yesterday due to Rupee appreciation touching an intra-day low of Rs.30051/10 gms and closed at Rs.30160/10 gms on Tuesday.


Silver

Taking cues from fall in gold prices along with fall in iShares Silver Trust Holdings, Spot silver prices slipped around 1.3 percent yesterday. Further, strength in the DX exerted downside pressure on the prices.

However, upbeat market sentiments along with positive performance in base metals complex failed to provide respite to fall in the prices. The white metal touched an intra-day low of $20.98/oz and closed at $21.10/oz in yesterday’s trade.

On the domestic front, prices fell around 1.3 percent yesterday due to Rupee appreciation and closed at Rs.46557/kg after touching an intra-day low of Rs.46278/kg on Tuesday.


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, upbeat market sentiments coupled with weakness in the DX will act as a positive factor. While on the other hand, ease of geopolitical tensions between Ukraine and Russia will lead to fall in safe haven demand which will act as a negative factor.

In the Indian markets, appreciation in the Rupee will cap sharp gains or exert downside pressure in the prices.