Commodities

Gold and silver daily review (February 13, 2013)

Contributed by Angel Broking

Gold

Spot gold prices after trading with a negative bias in the early part of the trade bounced back taking cues from weakness in the DX after Group of Seven rich nations said it is committed to market determined exchange rates and that the fiscal and monetary policies must not be directed at devaluing currencies. Spot gold prices settled 0.1 percent higher on Tuesday.

The yellow metal touched an intra-day high of $1,638.82 per ounce and closed at $1,650.4 per ounce on Tuesday. On the MCX, Gold April contract ended 0.2 percent lower. Appreciation in the Indian rupee acted as a bearish factor for the MCX gold prices. Gold prices on the MCX closed at Rs. 30,573/10 gms on Tuesday after touching an intraday low of Rs. 30,516/ 10gms.

Silver

Taking cues from rise in the Spot gold prices, silver prices also increased and ended 0.3 percent higher in yesterday's session. Strength in the base metals also acted as a supportive factor for the silver prices. Weakness in the DX added to the gains in the silver prices in yesterday's session. In the domestic markets, prices of silver on MCX witnessed a decline and ended 0.2 percent lower owing to appreciation in the Rupee.

The white metal touched an intra-day high of $31.12/oz and closed at $ 31.08 per oz on Tuesday. In the Indian markets, MCX silver prices ended 0.2 percent down and closed at Rs. 57,555/kg on Tuesday and touched an intra-day low of Rs. 57,211/ kg.

Outlook

In the intra-day, we expect gold prices to trade with upward bias on account of positive global market sentiments along with weakness in the DX. Positive comment by the European Central Bank President Mario Draghi that Spain is on proper bank aid program is also expected to support market sentiments and thereby rise in the risk appetite for the yellow metal. Investors might adopt a cautious approach ahead of the G-20 finance ministers meet scheduled on Friday, February 15, 2013. In the domestic markets, appreciation in the rupee might act as a bearish factor for the gold prices.