Commodities

Gold and silver daily review (January 11, 2013)

Contributed by Angel Broking

Gold

Spot gold prices gained 1 percent in yesterday's session. Positive global market sentiments along with weakness in the DX supported an upside in the gold prices. European Central Bank in its policy meeting kept interest rate steady yesterday. Successful bond auction of the Spain also added to the gains in the yellow metal. This led to rise in the risk appetite in the global markets and pushed gold prices upwards on Thursday.

The yellow metal touched an intra-day high of $ 1678.6/oz and closed at $ 1674.6 per ounce on Thursday. On the MCX, Gold February contract ended 0.5 percent higher tracing the trend in the spot gold prices. However, appreciation in the Indian rupee capped gains in the gold. Gold prices on the MCX closed at Rs. 30,936/10 gms on Thursday after touching a high of Rs. 30,950/ 10gms.

Silver

Spot silver prices ended 1.6 percent higher taking cues from firmness in the spot gold prices and weakness in the DX. Strength in the base metals pack also added to the gains in the silver prices in yesterday's session.

The white metal touched an intra-day high of $ 30.91/oz and closed at $ 30.8 per oz on Thursday. In the Indian markets, MCX silver prices gained 1.2 percent and closed at Rs. 58,680/kg on Thursday and touched an intra-day high of Rs. 58,730/ kg. Appreciation in the Indian rupee however, restricted sharp gains in the silver prices on MCX.

Outlook

In today's session, we expect precious metals to trade lower due to mixed global market sentiments along with strength in the DX. However, expectation of demand from the Asian buyers and stimulus measures by the Bank of Japan is expected to cushion sharp fall in the precious metals. In the domestic markets, depreciation in the rupee is expected to act as supportive factor for the MCX precious metals.