Commodities » Precious Metals

Gold and silver daily review (March 04, 2013)

Contributed by Angel Broking

Gold

Spot gold prices fell around 0.3 percent in the previous week on the back of rise in risk aversion in the global market sentiments coupled with strength in DX. Further, US GDP data grew at slow pace which also added downside pressure on the prices.

Additionally, comments from US Federal Reserve supporting to continue Bond buying program and comments from ECB president Draghi that central banks has no intentions of tightening monetary policy reduced the demand for safe heaven. The yellow metal touched a weekly low of $1,564.44/oz and closed at $1,574.86/oz on Friday's trading session.

In the Indian markets, prices gained by 0.8 percent on account of depreciation in Indian Rupee and closed at Rs.29,717/10 gms on Friday after touching a low of Rs.29,455/10 gms in the last week.


Silver

Taking cues from fall in gold prices coupled with downside in the base metals pack, Spot silver prices declined by 0.5 percent on weekly basis.

Further, strength in the DX also added downside pressure on the prices. The white metal prices touched a weekly low of $27.94/oz and closed at $28.55/oz in the last trading session of the week.

On the domestic front, prices gained by 0.8 percent on the back of depreciation in the Indian Rupee and closed at Rs. 53711/kg on Friday after touching a weekly low of Rs. 52621/kg.


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. In the Indian markets, depreciation in the Rupee will cushion sharp fall in the prices on the MCX.