Commodities

Gold and silver daily review (January 04, 2013)

Contributed by Angel Broking

Gold

Spot gold prices traded firm in the early part of the trade but declined towards the end of the session as the minutes of Federal Reserve Open Market Committee (FOMC) meeting, signaled that the policy makers might end th e $85 billion monthly bond buying program sometime in 2013. This created bearish market sentiments and erased earlier gains. Strength in the DX also acted as bearish factor for the gold prices.

Spot gold prices touched an intra-day low of $1,660.49 per oz and closed at $1,663 per oz in yesterday's session. In the domestic markets, MCX Gold prices traded lower taking cues from the weakness in the spot gold prices. However, depreciation in the Indian rupee cushioned sharp fall in the gold prices on MCX. MCX Gold prices touched an intraday low of Rs. 30,931 per 10 gms and closed at Rs. 30,945 per 10 gms on Thursday.

Silver

Spot silver prices ended 2.7 percent lower on account of bearish sentiments created after minutes of the FOMC meeting signaled that the policy makers might wind up the bond buying program. Strength in DX also acted as bearish factor for the silver prices in yesterday session.

The white metal prices touched a low of $ 29.98 per oz and closed at $ 30.13 per oz. In the domestic markets, silver prices on MCX declined tracking spot silver prices along bearishness in the base metals pack. However, depreciation in the Indian rupee cushioned fall in MCX. MCX silver prices touched a low of Rs 58,550 per kg and closed at Rs.58,651 per kg in yesterday's session.

Outlook

In the intra-day, we expect precious metals to trade lower taking cues from weak global market sentiments along with strength in the DX. In the domestic markets depreciation in the Rupee will cushion fall in the precious metals on MCX.