Commodities

Gold and silver daily review (February 28, 2013)

Contributed by Angel Broking

Gold

Spot gold prices fell around 1 percent yesterday on the back of decline in safe haven demand from the investors. However, sharp downside in the prices was cushioned on account of rise in risk appetite in the global market sentiments coupled with weakness in the DX.

In addition, optimistic statement from US Fed Chairman for supporting the central bank's decision of bond buying program. The yellow metal touched an intra-day low of $1,591.94/oz and closed at $1,597.20/oz in yesterday's trading session.

In the Indian markets, prices fell on account of appreciation in the Indian Rupee by 1.2 percent and closed at Rs.29,743/10 gms after touching an intra-day low of Rs.29,716/10 gms on Wednesday.

Silver

Taking cues from fall in gold prices coupled with mixed performance in the base metals, Spot silver prices declined by 1.3 percent in yesterday's trading session.

However, sharp downside in the prices was cushioned as result of weakness in the DX. The white metal prices touched an intra-day low of $28.82/oz and closed at $29.0/oz on Wednesday.

On the domestic front, prices declined by 1.5 percent and closed at Rs.53,786/kg after touching an intra-day low of Rs.53,680/kg in yesterday's trade. Appreciation in the Indian Rupee also added downside pressure on 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.