Commodities

Gold and silver daily review (February 27, 2013)

Contributed by Angel Broking

Gold

Spot gold prices increased around 1.2 percent yesterday on the back of rise in risk appetite in the global market sentiments. Additionally, positive statement from US Fed Chairman Ben Bernanke of supporting the US Federal Reserve decision of bond buying program als o supported an upside in the gold prices.

However, strength in the DX capped sharp gains in the gold prices. The yellow metal touched an intra-day high of $1,619.66/oz and closed at $1,613.10/oz in yesterday's trading session.

In the Indian markets, prices gained on account of depreciation in the Indian Rupee by 1.6 percent and closed at Rs.30,092/10 gms after touching an intra-day high of Rs.30,139/10 gms on Tuesday.

Silver

Taking cues from rise in gold prices coupled with upside in the base metals, Spot silver prices rose by 1.2 percent in yesterday's trading session.

However, sharp upside in the prices was capped as result of strength in the DX. The white metal prices touched an intra-day high of $29.45/oz and closed at $29.36/oz on Tuesday.

On the domestic front, prices increased by 1.1 percent and closed at Rs.54,582/kg after touching an intra-day high of Rs.54,739/kg in yesterday's trade. Depreciation in the Indian Rupee also supported an upside in the prices.

Outlook

In the intraday, we expect precious metals to trade on a positive note on the back of upbeat global market sentiments coupled with weakness in the DX. Additionally, favorable economic data from US and optimistic statement from US Fed Chairman will also support an upside in the gold prices. In the Indian markets, appreciation in the Rupee will cap sharp gains in the prices on the MCX.