Commodities

Gold and silver daily review (January 30, 2013)

Contributed by Angel Broking

Gold

Spot gold prices gained 0.6 percent erasing losses of the previous day on hopes that the US Federal Reserve might continue to keep its interest rates near zero until unemployment rates of the nation reaches 6.5 percent keeping inflation under control. Weakness in the DX also acted as a supportive factor for the gold prices in yesterday's ses sion.

The yellow metal touched an intra-day high of $ 1,665.66/oz and closed at $ 1663.5 per ounce on Monday. On the MCX, Gold February contract ended 0.3 percent lower due to appreciation in the Indian Rupee. MCX gold prices closed at Rs. 30,234 per 10 gms on Tuesday after touching an intra-day low of Rs. 30,215 per 10gm.

Silver

Spot silver gained 1.8 percent in yesterday's session tracing strength in the gold prices along with weakness in the DX. Firmness in the entire base metals also pushed prices upwards. Favorable economic data from the US also acted as supportive factor for the silver prices. Appreciation in the Indian rupee however capped gains in the MCX silver prices.

The white metal touched an intra-day high of $ 31.45/oz and closed at $ 31.4 per oz on Tuesday. In the Indian markets, MCX silver prices gained 0.2 percent and closed at Rs. 57,906/kg on Monday and touched an intra-day high of Rs. 58,030/ kg. However, sharp gains in the white metal were capped due to appreciation in the rupee.

Outlook

In today's session, we expect precious metals to trade higher on hopes that the US Federal Reserve might continue its bond buying program until first quarter of 2014 to bolster growth of the economy. Apart from this, weakness in the DX is expected to push prices upwards. In the domestic markets, appreciation in the rupee is likely to cap gains in the precious metals.