Commodities » Precious Metals

Gold and silver daily review (March 06, 2013)

Contributed by Angel Broking

Gold

Spot gold prices increased by 0.1 percent in the in yesterday are trading sessi on on the back of expectation among the market participants that major central banks will maintain the stimulus measures to spur growth coupled with weakness in DX.

Further, Bank of Korea bought 20 metric tons of gold also supported prices. The yellow metal touched an intra-day high of $1586.5/oz and closed at $1575.25/oz on Tuesday's trading session.

In the Indian markets, prices declined by 0.3 percent yesterday and closed at Rs.29569/10 gms after touching an intra-day low of Rs. 29556/10 gms on Tuesday. In the domestic markets upside in the prices was capped on the back of appreciation in the rupee.


Silver

Taking cues from rise in gold prices coupled with positive trading in the base metals pack, Spot silver prices ended positive by 0.4 percent on Tuesday.

Expectation among the market participants that major central banks will maintain the stimulus measures to spur growth, positive economic data from Europe and UK supported prices to trade on positive note. Further, positive ISM Non-Manufacturing PMI data from US coupled with weakness in DX supported prices. However, sharp downfall in prices was cap due to negative Services PMI data from Spain and Italy. The white metal prices touched an intra-day high of $29.1/oz and closed at $28.7/oz in yesterday's trade.

On the domestic front, prices ended on a flat note as a result of appreciation in the Indian Rupee and closed at Rs. 53803/kg after touching an intra-day low of Rs. 53750/kg on Tuesday.


Outlook

In the intraday, we expect precious metals to trade on a positive note on the back of optimistic global market sentiments coupled with weakness in the DX. In the Indian markets, appreciation in the Indian Rupee will cap sharp rises in the prices on the MCX.