New York: 13:36 || London: 18:36 || Mumbai: 22:06 || Singapore: 00:36

Commodities Precious Metals

Gold and silver daily review (March 28, 2014)

March 28, 2014, Friday, 05:36 GMT | 01:36 EST | 10:06 IST | 12:36 SGT
Contributed by Angel Broking


Gold

Gold prices declined for a continuous fourth session yesterday on account of dollar strength, encouraging economic growth in the US and technical weakness after the bullion broke the $1300 mark. Further dragging gold prices was the outflows from the SPDR Gold Trust, which fell for a second straight session, down 1.8 tonnes to 816.97 tonnes on Wednesday. That has cut its net inflow for the year to 18.8 tonnes.

On the economic data front, The U.S. economy grew a bit faster at the rate of 2.6 percent than previously estimated in the fourth quarter and new claims for jobless aid dropped to a near four-month low last week, suggesting the economy has plenty of momentum to break out of its winter chill.

On the MCX, gold prices declined by 0.4 percent making an intra-day low of Rs.28290 per10 gms and closed at Rs.28449 per 10 gms.


Silver

Tracking weakness in gold prices even spot silver prices declined by 0.1 percent on account of strength in dollar index, easing of geo-political tensions between Ukraine and Russia and profit booking at higher levels.

On the MCX, silver prices declined by 0.4 percent making an intra-day low of Rs.42559 per kg and closed at Rs.42891 per kg.


Outlook

On an intraday basis, we expect precious metals prices to trade lower as the growth in the US economy has raised the prospects of dollar to strengthen in turn exerting downside pressure on prices. In addition, Bullion will be under pressure on comments by Federal Reserve Chair Janet Yellen said last week that rates could start rising early next year. However, prices will be cushioned on strong demand from China and indications that the European Central Bank may support more economic stimulus measures.

On the MCX, rupee weakness in international markets will push the metal lower; however weakness in the rupee can support the prices.