Commodities

Gold and silver daily review (February 07, 2013)

Contributed by Angel Broking

Gold

Spot gold prices gained by 0.3 percent in yesterday' session. Gold prices traded in a narrow range ahead of the European Central Bank meeting scheduled on February 7, 2013. Strength in the DX however, restricted gains in the gold prices in yesterday's session.

The yellow metal touched an intra-day high of $1,679.1/oz and closed at $ 1,677.11per ounce on Wednesday. On the MCX, Gold April contract ended 1.9 percent higher tracing strength in the spot gold prices along with depreciation in the rupee. Gold prices on the MCX closed at Rs. 30,711/10 gms on Wednesday after touching an intra-day high of Rs. 30,767/ 10gms.

Silver

Spot silver rose 0.1 percent in yesterday's session. Silver prices traced strength in the spot gold prices. However, weakness in the base metals along with strength in the DX capped gains.

The white metal touched an intra-day high of $31.87/oz and closed at $ 31.81 per oz on Wednesday. In the Indian markets, MCX silver prices ended on a flat note and closed at Rs. 58,376/kg on Wednesday and touched an intra-day high of Rs. 58,478/ kg. Strength in the spot silver prices along with depreciation in the Indian rupee supported an upside in the silver prices on MCX.

Outlook

In today's session, we expect bullion prices to trade in the negative territory on account of strength in the DX and as investors adopt a cautious approach ahead of the European Central bank meeting. Positive economic data from the US, China and Euro zone region in the last week has caused the safe haven buying for the gold to reduce as the global economy recovers. In the Indian markets depreciation in the Rupee will cushion fall in the MCX gold prices.