Commodities

Gold and silver daily review (January 15, 2013)

Contributed by Angel Broking

Gold

Spot gold prices gained 0.3 percent due to positive global market sentiments al ong with weakness in the DX. Physical buying by the Asian buyers also supported an upside in the gold prices. Additionally, worries over the US debt ceiling which emerged and needs to be resolved supported safe haven buying for the yellow metal towards the en d of the session.

The yellow metal touched an intra-day high of $ 1,674.4/oz and closed at $ 1,666.8 per ounce on Monday. On the MCX, Gold February contract ended 0.1 percent lower due to appreciation in the rupee. Gold prices on the MCX closed at Rs. 30,740/10 gms on Monday after touching a low of Rs. 30,716/ 10gms.

Silver

Spot silver prices ended 1.9 percent higher taking cues from firmness in the spot gold prices and weakness in the DX. However, weakness in the base metals pack restricted sharp gains in the silver prices in yesterday's session.

The white metal touched an intra-day high of $ 31.12/oz and closed at $ 31.0 per oz on Monday. In the Indian markets, MCX silver prices gained 1.1 percent and closed at Rs. 58,743/kg on Monday and touched an intra-day high of Rs. 58,964/ 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 higher due to mixed global market sentiments along with weakness in the DX. Worries over the US debt ceiling might increase the safe haven buying of the yellow metal. In the domestic markets, appreciation in the rupee is expected to exert downside pressure on the MCX precious metals.