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Commodities » Precious Metals

Gold and silver daily review (May 20, 2014)

May 20, 2014, Tuesday, 07:03 GMT | 02:03 EST | 11:33 IST | 14:03 SGT
Contributed by Angel Broking


Gold

Rising equities in the US and gold prices trading below the key $1300 mark pressurized prices further as bullions safe haven appeal has been reducing by rise in other asset class. Besides, lack of investment demand and soft physical demand also exerted downside pressure on prices.

Meanwhile, holdings of the SPDR Gold Trust, the world's top gold-backed exchange-traded fund, fell 0.26 tonnes to 781.99 tonnes on Friday, in a sign of ebbing investor demand.

In official-sector news, the ECB and other central banks announced the renewal of the current central bank gold agreement from September this year.

On the MCX, gold prices gained marginally by 0.2 percent and closed at Rs.28144/10gms.


Silver

Spot silver prices gained marginally by 0.3 percent in contrary to decline in gold prices. Besides, weakness in the DX and strength in the base metals complex also acted as a positive factor.

On the MCX, silver prices declined marginally by 0.1 percent and closed at Rs.40866/kg.


Outlook

On an intraday basis, gold and silver prices are expected to trade sideways on lack of economic indicators this week while this could also pressure gold prices prompting buyers to stay on the sidelines.

Movements in the dollar index, rising equities and low treasury yields are all indications of gold prices heading lower in the coming session. Also, lackluster investment demand coupled with soft physical demand will also exert downside pressure.

On the MCX, gold prices is expected to trade sideways taking cues from international markets while rupee movements has to be closely watched in the coming sessions.