Commodities

Gold and silver daily review (January 29, 2013)

Contributed by Angel Broking

Gold

Spot gold prices declined 0.2 percent in yesterday's session taking cues from positive economic data from global markets thereby reducing the safe haven demand for the yellow metal. Strength in the DX also exerted downside pressure on the gold prices in yesterday's session.

The yellow metal touched an intra-day low of $1,651.93/oz and clo sed at $ 1654.3 per ounce on Monday. On the MCX, Gold February contract ended on a flat note taking cues from the spot gold prices along with depreciation in the Indian Rupee. MCX gold prices closed at Rs. 30,338/10 gms on Monday after touching an intra-day low of Rs. 30,278/ 10gm.

Silver

Spot silver declined 1 percent in yesterday's session tracing weakness in the spot Silver prices along with strength in the DX. However, fall in the prices were cushioned due strength in the entire base metals except aluminum. Favorable economic data from the US along with depreciation in the Indian rupee also cushioned sharp fall in the industrial metal.

The white metal touched an intra-day low of $ 31.8/oz and closed at $ 30.7 per oz on Monday. In the Indian markets, MCX silver prices fell 0.8 percent and closed at Rs. 57,762/kg on Monday and touched an intra-day low of Rs. 57,677/ kg.

Outlook

In today's session, we expect precious metals remain lower due to positive economic data from the major nations indicating growth which is resulting into lower appetite for the safe haven metal. Investors might also follow a cautious approach ahead of the Federal Reserve Open Market committee meeting which starts today to get more clues on US monetary policy and state of the world's largest economy. However, weakness in the DX might cushion fall in the prices of precious metals. In the domestic markets appreciation in the rupee is likely to exert downside pressure on the precious metals.