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Commodities » Precious Metals

Gold and silver daily review (September 03, 2014)

September 3, 2014, Wednesday, 06:01 GMT | 01:01 EST | 10:31 IST | 13:01 SGT
Contributed by Angel Broking


Gold

Spot gold prices declined on Tuesday, its biggest one day drop since mid July due to strength in the dollar, technical selling and decline in crude oil prices sending gold prices to two and a half month low. Speculation that the European Central Bank will do more to help a wobbly euro zone economy, combined with data showing encouraging U.S. manufacturing activities and construction spending led to declining safe haven bids for the yellow metal.

On the MCX, gold prices declined by 1.36 percent in taking cues from weak international markets and closed at Rs.27554/10gms.


Silver

Spot silver prices declined by around 1.8 percent on Tuesday in tandem with decline in gold prices. Strength in the dollar index coupled with weakness in Nickel prices dragged prices further.

On the MCX, silver prices declined by around 0.9 percent and closed at Rs.41617/kg.


Outlook

On an intraday basis, we expect gold and silver prices to trade on a negative note as the economic data released from the US in the recent weeks is suggesting growth in the economy. The flow of money is diverting from gold to risky asset class like equities.

Good manufacturing data released from US last night also indicates growth in the industrial activity which will further exert downside pressure on prices.

On the MCX, gold prices are expected to trade on a low note taking cues from weak international markets.