Commodities » Precious Metals

Gold and silver daily review (March 12, 2013)

Contributed by Angel Broking

Gold

Spot gold prices increased by 0.2 percent in the yesterday trading session on the back of rise in inflation data from china and on expectation of continued monetary stimulus from US.

Further optimistic global market sentiments and favorable economic data from US showing improving US economy pressured gold safe heaven appeal. The yellow metal touched an intra-day high of $1583.35/oz and closed at $1580.4/oz on Monday trading session.

In the Indian markets, prices ended flat in the yesterday trading session and closed at Rs29321/10 gms after touching an intra-day low of Rs. 29300/10 gms on Monday. Depreciation in the Indian rupee cushioned sharp downfall in prices.


Silver

Spot silver prices ended flat on Monday on the back of negative economic data from Europe. Further, Fitch cut Italy's credit rating also added downside pressure.

However, optimistic global market sentiments coupled with weakness in the DX cushioned the sharp decline in prices. The white metal prices touched an intra-day low of $28.69/oz and closed at $29.0/oz in yesterday's trade.

On the domestic front, prices ended on a negative note by 0.5 percent and closed at Rs. 54593/kg after touching an intra-day low of Rs.54437 /kg on Monday. Depreciation in the Indian rupee cushioned sharp downfall in 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. In the Indian markets, appreciation in the Indian Rupee will cap sharp upside in prices on MCX.