Commodities

Gold and silver daily review (January 08, 2013)

Contributed by Angel Broking

Gold

Spot gold prices declined 0.6 percent due to rise in the risk aversion in the global markets on worries that the US Federal Reserve policy makers might discontinue their bond buying program. Further, strength in the DX in the first half of the trade led prices to remain under do wnward pressure. However towards the end of the session weakness in the DX erased some of the losses in the yellow metal.

The yellow metal touched an intra-day low of $ 1642.14/oz and closed at $ 1646.6 per ounce on Monday. On the MCX, Gold February contract ended 0.2 percent higher due to depreciation in the Indian Rupee along with expectation that the government might increase the import duty of the gold. Gold prices on the MCX closed at Rs. 30,863/10 gms on Monday after touching a high of Rs. 31,058/ 10gms.

Silver

Spot silver prices fell 0.3 percent taking cues from trend in the spot gold prices along with strength in the DX in the first half of the trading session. Weakness in the base metals pack also acted as a bearish factor for the silver prices.

The white metal touched an intra-day low of $ 29.81/oz and closed at $ 30.1 per oz on Monday. In the Indian markets, MCX silver prices rose 0.8 percent due to depreciation in the rupee and closed at Rs. 57,983/kg on Monday. It touched an intra-day high of Rs. 58,424 per kg in yesterday's session.

Outlook

In today' session, we expect precious metals to trade higher owing to weakness in the DX along with reports of improved physical buying by the Asian buyers. In the domestic markets, appreciation in the rupee is expected to act as bearish factor for the MCX precious metals.