Commodities » Precious Metals

Gold and silver daily review (March 14, 2013)

Contributed by Angel Broking

Gold

Spot gold prices declined by 0.3 percent in the yesterday trading session on t he back of strength in DX and mixed global market sentiments. Further, favorable economic data from US showing growth in economy pressured the demand for safe haven. However, worries over Europe's debt crisis coupled expectation of monetary stimulus measures from major central banks cushioned sharp decline in prices.

The yellow metal touched an intra-day high of $1599.5/oz and closed at $1587.3/oz on Wednesday trading session.

In the Indian markets, prices ended on positive note in the yesterday trading session and closed at Rs29489/10 gms after touching an intra-day high of Rs. 29594/10 gms on Wednesday. Depreciation in the Indian rupee supported prices to trade on positive note.


Silver

Taking cues from decline in gold prices along with downside pressure in base metal complex, Spot silver prices ended on negative note by 0.8 percent on Wednesday. Strength in DX coupled with negative economic data from Europe added downside pressure.

Further, mixed global market sentiments also acted as a negative factor. However, positive retail sales data from US cushioned sharp decline in prices. The white metal prices touched an intra-day low of $28.83 /oz and closed at $28.92/oz in yesterday's trade.

On the domestic front, prices ended on a negative note by 0.3 percent and closed at Rs. 54757/kg after touching an intra-day low of Rs. 54580/kg on Wednesday. Depreciation in the Indian rupee prevented sharp declines in prices on MCX.


Outlook

In the intraday, we expect precious metals to trade on a positive note on the back of expectation of negative job data from US coupled with weakness in DX. Further, worries over Europe debt crisis and UK's economic condition may support prices to trade positive. Additionally, expectation of monetary stimulus measures from major central banks will support prices. In the Indian markets, appreciation in the Indian Rupee will cap sharp upside in prices on MCX.