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Commodities Precious Metals

Gold and silver daily review (May 02, 2014)

May 2, 2014, Friday, 04:47 GMT | 23:47 EST | 08:17 IST | 10:47 SGT
Contributed by Angel Broking


Gold

Gold prices continued its decline in Thursday’s session on account of fresh outflows from the SPDR gold ETF. Also, the Federal Reserve reinforced its view in the U.S. economy's prospects and reduced its monthly bond purchases, as expected.

The metal was under pressure after data showed U.S. consumer spending recorded its largest gain in more than 4-1/2 years in March and factory activity accelerated last month, strengthening views the economy was regaining steam.

On the MCX, gold prices declined by 1.1percent and closed at Rs.28580/10 gms.


Silver

Taking cues from weakness in gold prices, even spot silver prices declined by – percent on account of profit booking and good economic data from the US lifting dollar and pressure on the commodity.

On the MCX, silver prices declined by 1 percent and closed at Rs.40906/kg.


Outlook

On an intraday basis, we expect gold and silver prices to trade with a negative bias as Federal Reserve believes that US economic prospects is in a bright spot and continue to reduce its bond buying programme in the coming months. Besides, consumer spending which indicates 70 percent on the economy is at its higher level in last 4 and a half year acting as a positive factor for the economy and negative for gold and silver prices.