Commodities

Gold and silver daily review (February 26, 2013)

Contributed by Angel Broking

Gold

Spot gold prices increased around 0.9 percent on the back of gold behaving as a safe haven asset for the investors after rise in risk aversion in the global market sentiments.

However, strength in the DX capped sharp gains in the gold prices. The yellow metal touched an intra-day high of $1,596.80/oz and closed at $1,593.90/oz in yesterday's trading session.

In the Indian markets, prices gained by 0.4 percent and closed at Rs.29,617/10 gms after touching an intra-day high of Rs.29,675/10 gms on Monday. Appreciation in the Indian Rupee capped sharp gains in the prices on the MCX.

Silver

Taking cues from rise in gold prices, Spot silver prices rose by 1.1 percent in yesterday's trading session.

However, sharp upside in the prices was capped as result of downside in the base metals pack coupled with strength in the DX. The white metal prices touched an intra-day high of $29.24/oz and closed at $29.0/oz on Monday.

On the domestic front, prices increased by 1.3 percent and closed at Rs.53,972/kg after touching an intra-day high of Rs.54,190/kg in yesterday's trade.

Outlook

In the intraday, we expect precious metals will act as a safe haven asset and will trade on a positive note on the back of rise in risk aversion in the global market sentiments. Strength in the DX will also add downside pressure on the precious metal prices. In the Indian markets, depreciation in the Indian Rupee will support gains in the prices on the MCX.