Commodities

Gold and silver daily review (March 01, 2013)

Contributed by Angel Broking

Gold

Spot gold prices fell around 1.1 percent yesterday on the back of rise in risk aversi on in the global market sentiments. Further, US GDP data grew at slow pace which also added downside pressure on the prices.

In addition, strength in the DX also acted as a negative factor for the gold prices. The yellow metal touched an intra-day low of $1,574.3 4/oz and closed at $1,579.80/oz in yesterday's trading session.

In the Indian markets, prices fell by 0.6 percent and closed at Rs.29,570/10 gms after touching an intra-day low of Rs.29,513/10 gms on Thursday Depreciation in the Indian Rupee prevented sharp fall in the prices on the MCX.

Silver

Taking cues from fall in gold prices coupled with downside in the base metals pack, Spot silver prices declined by 1.7 percent in yesterday's trading session.

Further, strength in the DX also added downside pressure on the prices. The white metal prices touched an intra-day low of $28.38/oz and closed at $28.50/oz on Thursday.

On the domestic front, prices declined by 1 percent and closed at Rs.53,267/kg after touching an intra-day low of Rs.53,145/kg in yesterday's trade. Depreciation in the Indian Rupee restricted sharp downside in the prices.

Outlook

In the intraday, we expect precious metals to trade on a negative note on the back of weak global market sentiments coupled with strength in the DX. Additionally, expectations of lowering the growth forecast by the IMF will also add downside pressure on the prices. In the Indian markets, depreciation in the Rupee will cushion sharp fall in the prices on the MCX.