Commodities

Gold and silver daily review (January 01, 2013)

Contributed by Angel Broking

Gold

Spot gold prices gained 1.2 percent in yesterday's session due to rise in the risk aversion causing widespread uncertainty over the US fiscal cliff issue. This increased the safe haven buying for the gold prices. However, strength in the DX restricted sharp gains in the gold prices.

The yellow metal touched an intra-day high of $ 1,680.1/oz and closed at $ 1,674.3 per ounce on Monday. On the MCX, Gold February contract ended 0.6 percent higher on account of depreciation in the Indian rupee and traced strength in the spot gold prices. Gold prices on the MCX closed at Rs. 30,859/10 gms on Monday after touching a high of Rs. 30,888/ 10gms.

Silver

Spot silver prices gained 1 percent in yesterday's session due to strength in the spot gold prices along with firmness in the base metals pack. However, strength in DX capped gains in the silver prices.

The white metal touched an intra-day high of $ /oz and closed at $ 30.3 per oz on Monday. In the Indian markets, MCX silver prices gained 0.6 percent and closed at Rs. 57,864 per kg on Monday and touched a high of Rs. 58,030/ kg. Depreciation in the Indian rupee supported an upside in the silver prices on MCX.

Outlook

In the intra-day, we expect precious metals to higher due to improved buying at lower levels. However, strength in the DX is expected to cap sharp gains in the precious metals. Silver prices might also derive trend from the movement in the base metals pack. In the domestic markets appreciation in the Rupee will exert downside pressure on the precious metals on MCX.