Commodities » Precious Metals

Gold and silver daily review (March 11, 2013)

Contributed by Angel Broking

Gold

Spot gold prices increased by 0.2 percent in the previous week on the back of expectation among the market participants that major central banks will maintain the stimulus measures to spur growth, which increased the worries over rise in inflation among the investors. However, European central bank and Bank of England gave no hint on further monetary stimulus capped the upside movement in prices.

Further optimistic global market sentiments and overall favorable economic data's from US showing improving US economy pressured gold safe heaven appeal. The yellow metal touched a weekly high of $1582.9/oz and closed at $1577.74/oz on Friday's trading session.

In the Indian markets, prices declined by 1.3 on the back of appreciation in the Indian rupee and closed at Rs. 29335/10 gms on Friday after touching a low of Rs. 29111/10 gms in the last week.


Silver

Taking cues from rise in gold prices, spot silver prices climb by 1.4 percent on weekly basis. On the back of optimistic global market sentiments and overall favorable economic data's from US showing improving US economy.

Further, ECB president Draghi comments that region economy will become stable supported prices. However, strength in DX and mixed economic data from euro region capped sharp rallies. The white metal prices touched a weekly high of $29.24/oz and closed at $28.96/oz in the last trading session of the week.

On the domestic front, prices ended on a positive note by 2.1 percent and closed at Rs. 54854/kg on Friday after touching a weekly high of Rs. 55236/kg. Appreciation in the Indian rupee capped the sharp gains in the prices.


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 DX. Further, rise in inflation data from China will also support prices. However, favorable economic data's from US showing improving US economy will pressure gold safe heaven appeal. In the Indian markets, appreciation in the Indian Rupee will cap sharp upside in prices on MCX.