Commodities

Gold and silver daily review (February 15, 2013)

Contributed by Angel Broking

Gold

Spot gold prices continued to add to the losses of the previous day tak ing cues from weak economic data from the Euro zone region which renewed worries amongst the market participants. Apart from decline in the global gold demand in 2012 as reported by the World Gold Council (WGC) also weighed on the market sentiments. Positive jobs data from the US in yesterday's session also acted as a bearish factor for the yellow metal as the demand for the metal as hedge against inflation might reduce. Strength in the DX also added to the losses in the gold prices on Thursday. Spot gold prices ended 0.4 percent down in yesterday's session.

The yellow metal touched an intra-day low of $1,632.34 per ounce and closed at $1,635.4 per ounce on Thursday. On the MCX, Gold April contract ended 0.3 percent lower. MCX gold prices traced weakness in the spot gold prices. However, depreciation in the rupee cushioned fall in the MCX gold prices. Gold prices on the MCX closed at Rs. 30,463/10 gms on Thursday after touching an intra-day low of Rs. 30452 / 10gms.

Silver

Tracing weakness in the spot gold prices along with strength in the DX, spot Silver prices also declined 1 percent. Weakness in most of the base metals also acted as a bearish factor for the gold prices. In the Indian markets prices of silver on MCX witnessed a decline and ended 1.4 percent lower taking cues from fall in the spot silver prices. However, depreciation in the rupee cushioned fall in the gold prices in yesterday's session.

The white metal touched an intra-day low of $ 30.2 /oz and closed at $ 30.4 per oz on Thursday. In the Indian markets, MCX silver prices ended 1.4 percent down and closed at Rs. 56,630/kg on Thursday and touched an intra-day low of Rs. 56,550 / kg.

Outlook

In today's session we expect precious metal to trade on a bearish note as positive data from the US has reduced the buying of the metal as hedge against inflation. Investors are also awaiting the two day meeting of G-20 finance ministers for clues over the global growth and their views on currencies. Thus investors might adopt cautious approach. However, weakness in the DX is expected to cushion fall in the precious metals. Depreciation in the Rupee is expected to cushion fall in the MCX prices of precious metals.