Bullion extended losses in yesterday’s session with the complex fell as they took the cues from strong performance in US equities and also after the moderately better US Retails sales number. At the end of the day, Gold for February expiry at Comex was lower by 0.45% to $1245 per ounce. In Indian markets too, prices fell by a similar rate and declined 0.4% to Rs 29030 per 10/Gms.
Gold and Silver prices traded on a weak note yesterday and are increasing their losses moderately in the early morning trade in Asia. Overall while looking at the broader markets cues, we have the important inflation numbers from the US which as per Bloomberg survey are seen rising marginally both on a YoY and MoM basis. Rise in inflation on one side is good for Bullion, though negatively it also gives more leeway to the US Fed to continue its tapering program in the coming months at a much higher rate. Lately, the Philadelphia and Dallas Fed President’s; Charles Plosser and Richard Fisher called for continued reduction of the central bank’s bond-buying program.
The other cues from institution side also continue to weigh on gold prices globally. Assets in the SPDR Gold Trust, the biggest bullion backed ETP fell for the first time in four days to a five-year low of 789.56 MT as per latest data. However, our technical study depicts, gold prices are hovering near important support levels and thus we hold a cautious outlook with modest buying view in the Asian and Euro hours. We would wait for building a further stronger view on gold, whether to sell/buy post the US data on PPI is released
Silver was the other precious metal which slipped in yesterday’s session with the performance almost in-line with the trend in the yellow metal. Silver for most active March contract at Comex fell 0.5% to $20.28 per ounce wherein in local markets we saw silver prices falling by 0.4% to Rs 44940 per Kg, with marginally lower performance probably led by anticipation of modest losses in the Rupee.
Silver prices fell in yesterday’s session and are increasing their losses in today’s trade. Silver lost around 0.6% in the Comex electronic trading with a bigger loss seen than gold as it took negative cues from both the precious metals and the industrial metals space. Most base metals were losing their ground today tracking weak data from Chinese markets wherein the money supply data depicted continued tight credit situation in the country. We have a ranged view into the commodity today. However on a performance basis it is likely to continue underperform the former and traders can look for building strategy positions by selling silver buying gold for small profits today.
BUY GOLD MCX FEB NEAR 28980-28960 SL 28870 TGT 29150
COMMODITY MARKET EVENTS FOR DAY TRADING:
| DATE | TIME | Region | Event of the Day | Period | Survey | Prior |
| 15.01.14 | 17:30 | US | MBA Mortgage Apllications | Jan-10 | — | 2.60% |
| 15.01.14 | 19:00 | US | Empire Manufacturing | Jan | 3 | 0.98 |
| 15.01.14 | 19:00 | US | PPI MoM | Dec | 0.40% | -0.10% |
| 15.01.14 | 19:00 | US | PPI YoY | Dec | 1.20% | 0.70% |