Commodities

Gold and silver daily review (January 09, 2013)

Contributed by Angel Broking

Gold

Spot gold prices gained 0.7 percent in yesterday's session. There were reports of improved buying by the China due to signs of economic recovery and lower prices of the yellow metal. Apart from this, Japanese pension funds are also likely to increase gold holding as the government adopts aggressive monetary easing programs to boost the economic growth and targets deflation in the nation.

The yellow metal touched an intra-day high of $ 1,661.9/oz and closed at $ 1,658.6 per ounce on Tuesday. On the MCX, Gold February contract ended 0.4 percent higher taking cues from the trend in the spot gold prices. Gold prices on the MCX closed at Rs. 30,974/10 gms on Tuesday after touching a high of Rs. 30,995/ 10gms. However, appreciation in the rupee, capped gains in the gold prices.

Silver

Spot silver prices gained 0.7 percent taking cues from firmness in the spot gold prices and weakness in the DX in the first half of the trading day. Weakness in the base metals pack however, capped gains in the base metals pack.

The white metal touched an intra-day high of $ 30.52/oz and closed at $ 30.34 per oz on Tuesday. In the Indian markets, MCX silver prices rose 0.8 percent and closed at Rs. 58,470/kg on Tuesday and touched an intra-day high of Rs. 58,650 / kg. Appreciation in the Indian rupee restricted gains in the silver prices on MCX.

Outlook

In today' session, we expect precious metals to trade lower owing mixed global market sentiments and strength in the DX. However, physical buying by the Asian countries might cushion fall in the prices. In the domestic markets, appreciation in the rupee is expected to act as bearish factor for the MCX precious metals.