WEEKLY COMMODITY TECHNICAL REPORT 24 FEB TO 28 FEB 2014
Gold, Silver to trade higher on rising ETF holdings:
Gold and silver are expected to trade higher on increased investor interest evident from rise in ETF holdings in February. Stronger dollar had a distinct influence on gold and silver prices in 2013 but in January 2014, gold prices rose 3.2% despite a stronger dollar as re-emergence of positive demand-side signals supported gains in prices. But silver prices in dollar terms fell 1.7% in January as it was affected by dollar strength and weak fundamentals. Over the month of February till date, gold and silver prices have jumped by 5.5% and 12% respectively while Dollar weakened 1.4%. At India’s Multi Commodity Exchange (MCX), gold and silver prices in the same period have increased by 4 percent and 9 percent. Gains in the Indian markets were restricted on account of weakness in the Rupee. Gold prices would be impacted by pace of US Fed tapering and slow tapering could provide support for gold. Rupee appreciation on favorable economic data could cap sharp gains in precious metals prices in MCX. Over the near-term, silver prices on the MCX are expected to rise to Rs48000-49000/kg. In the international markets, the white metal is likely to trade in the range of $22-23.0/oz mark.
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SORCE:: TRIFID RESEARCH
This post has been edited by trifid1787: Feb 22 2014, 10:23 AM
