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Commodities Precious Metals

Gold and silver daily review (March 14, 2014)

March 14, 2014, Friday, 05:13 GMT | 01:13 EST | 09:43 IST | 12:13 SGT
Contributed by Angel Broking


Gold

Spot gold prices gained around 0.2 percent yesterday taking cues from escalating geo-political tensions between Russia and Western nations over Ukraine. Russia launched new military exercises near its border with Ukraine on Thursday, showing no sign of backing down on plans to annex its neighbor’s Crimea region despite a stronger than expected drive for sanctions from the EU and United States. Gold is headed for its biggest gain in nearly four weeks as investors exited risky assets and divert their investments in gold.

Also in an increasing sign of confidence in gold as an asset class, money is flowing in to gold back ETF’s with holdings in SPDR Gold Trust rising 2.10 tonnes to 813.30 tonnes on Thursday.

In the Indian markets, gold prices increased by 0.3 percent touching an intra-day high of Rs.305756/10 gms and closed at Rs.30549/10 gms on Thursday.


Silver

Taking cues from rise in gold prices along with strength in the DX, comex silver prices increased by 2.6 percent in yesterday’s trade. The white metal touched an intra-day high of $21.48/oz and closed at $21.30/oz in yesterday’s trade.

In contrary to the rise in the international markets, silver prices on the MCX declined by 0.1 percent yesterday and closed at Rs.46734/kg after touching an intra-day high of Rs.47071/kg on Thursday.


Outlook

Gold and silver prices are expected to trade on a positive note today on the back of rise in safe haven demand due to geopolitical tensions between Ukraine and Russia. Further, upbeat market sentiments coupled with strength in the DX on account of positive data set released from US will act as a positive factor. However, sharp upside in the prices will be capped as physical demand in Asian regions has slowed down. In the Indian markets, depreciation in the Rupee will support sharp gains in the prices.

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