Commodities

Gold and silver daily review (February 19, 2013)

Contributed by Angel Broking

Gold

Spot gold prices ended on a flat note. Gold prices gained in the early part of the trade due to buying at lower levels and on hopes of rise in demand after the Chinese Lunar New Year holidays. However, market participation was lower as the US markets remained closed yesterday on the occasion of President Day. Strength in the DX in the early part of the trade restricted rise in the prices.

The yellow metal touched an intra-day high of $ 1,618.5/oz and closed at $ 1,609.55/ounce on Monday. On the MCX, Gold April contract ended 0.1 percent lower taking cues from trend in the spot gold prices. Appreciation in the rupee also pulled the gold prices lower. Gold prices on the MCX closed at Rs.30, 176/10 gms on Monday after touching an intra-day low of Rs. 30,148/ 10gms.

Silver

Spot silver gained 0.6 percent on Monday. Silver prices gained taking cues from strength in the spot gold prices in the early part of the trade. Short coverings by the market participants after sharp fall in the last week also pushed prices upwards. Weakness in the base metals pack however, capped gains in the silver prices.

The white metal touched an intra-day high of $ 30.15/oz and closed at $ 29.94 per oz on Monday. In the Indian markets, MCX silver prices gained 0.2 percent and closed at Rs. 56,215/kg on Monday and touched a intra-day high of Rs. 56,415/ kg. Silver prices on MCX traced strength of spot silver prices. Appreciation in the Indian rupee in the later part of the day however, capped gains in the silver prices on MCX.

Outlook

In the intra-day we expect gold prices to trade with a bearish note taking cues from strength in the DX along with reduced safe haven buying taking cues from positive data from the US and China in the last week. However, buying might be initiated at lower levels after sharp fall in the prices in the last week. In the domestic market prices are expected to trace spot gold prices.