Commodities

Gold and silver daily review (August 31, 2012)

Contributed by Angel Broking

Gold

Spot gold prices swung between gains and losses and settled on a flat note as investors followed wait and watch stance awaiting decision on further stimulus measures to be taken in the annual meeting of the US Federal Reserve at Jackson Hole Wyoming today. Further, renewed debt worries of the Euro zone area along with strength in the DX exerted downside pressure on the gold prices.

The yellow metal touched an intra-day low of $1652.40/oz and closed at $1655.5/oz in yesterday's trading session. On the MCX, Gold October contract settled on a flat note and closed at Rs.30,837/10gms after touching an intra-day low of Rs.30,756/10gms on Thursday. Depreciation in the Indian Rupee however cushioned sharp fall in the prices.

Silver

Taking cues from fall in base metals pack along with mixed movement in the gold prices Spot silver prices declined by 0.9 percent yesterday. Additionally, a stronger DX also added downside pressure on silver prices.

The white metal touched an intra-day low of $30.19/oz and closed at $30.40/oz on Thursday. In the Indian markets, prices declined by 1.1 percent and closed at Rs.56,953/kg after touching an intra-day low of Rs.56,731/kg in yesterday's trading session.

Outlook

In today's session we expect precious metals to trade rangebound with bearish tone on the back of weak global markets along with strength in the DX. Also, market participants are awaiting decision by the US Federal Reserve on further stimulus measures to be announced in the later part of the evening today.