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Commodities Precious Metals

Gold and silver daily review (March 19, 2014)

March 19, 2014, Wednesday, 05:57 GMT | 01:57 EST | 10:27 IST | 12:57 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined 0.8 percent yesterday after comments from Russian president that he would not seize other regions outside Crimea. Besides, investors chose riskier assets like equities with S&P gaining 1 percent. In addition, gold investors took profits after the metal gained 3% last week due to China's first corporate bond default and fears of slowdown in world’s second largest economy.

Further, investors also awaited a closely watched policy statement from the U.S. Federal Reserve. Janet Yellen's first policy-setting meeting as Fed chair will focus on how to finesse a rewriting of the central bank's promise to keep interest rates low without roiling financial markets.

In the Indian markets, gold prices declined by 0.6 percent touching an intra-day high of Rs.30350/10 gms and closed at Rs.30205/10 gms on Tuesday.


Silver

Taking cues from fall in gold prices even silver prices declined by 1.7 percent on account easing tensions in the Crimean region. In addition investors chose to take profits sending the metal lower. Strength in the DX also acted as a negative factor pushing the metal lower. The white metal touched an intra-day low of $20.65/oz and closed at $20.83/oz in yesterday’s trade.

Silver prices on the MCX declined by 1.9 percent yesterday and closed at Rs.45840/kg after touching an intra-day low of Rs.45555/kg.


Outlook

Gold and silver prices are expected to trade on a negative note today as escalating crisis in Eastern Europe seem to have settled down and investors chose to dump the precious metal and put the money in equities. Meanwhile, markets will also keenly watch for the outcome of the policy statement which could further decide the trajectory in the coming session.