GOLD AND SILVER DAILY REVIEW FOR TODAY 28-OCT

Gold

Spot gold prices gained around 2.7 percent in the last week on the back of weakness in the DX. Further, expectations of delay in QE tapering program by the Federal Reserve supported an upside in the prices.

Gold prices traded on a positive note despite decline in gold ETF holdings managed under SPDR Gold Holdings Trust which slipped around 1.2 percent to 872.02 tonnes. The yellow metal touched a weekly high of $1355.2/oz and closed at 1351.70/oz in last trading session of the week.

In the Indian markets, prices rose 4.3 percent due to Rupee depreciation and closed at Rs.30734/10 gms on Friday after touching a high of Rs.30824/10 gms in the last week.



Silver

Taking cues from positive sentiments in gold and the base metals space, silver prices gained around 3 percent in the last week. Further, weakness in the DX supported an upside in prices.

Additionally, rise in ETF holdings of iShares Silver Trust by 0.5 percent to 10442.30 tonnes acted as a positive factor. The white metal touched a weekly high of $22.85/oz and closed at $22.50/oz in last trade of the week.

On the MCX, near month contract prices increased by more than 3 percent owing to Rupee depreciation and closed at Rs.49709/kg on Friday after touching a high of Rs.50330/kg in prior week.


Outlook

In today's trade, we expect gold prices to trade higher on account of expectations of delay in QE tapering program by the Federal Reserve. Further, a weaker DX will act as a positive factor. However, sharp upside will be capped as a result of decline in SPDR gold holdings. Rupee appreciation will cap sharp gains in precious metal prices on the MCX today.

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