Commodities » Precious Metals

Gold and silver daily review (March 15, 2013)

Contributed by Angel Broking

Gold

Spot gold prices increased by 0.2 percent in the yesterday trading session on th e back of weakness in DX coupled with optimistic global market sentiments. Further, expectation among the investors that major central bank may continue with monetary stimulus measures. However, favorable economic data from US showing growth in economy pressured the demand for safe haven.

The yellow metal touched an intra-day high of $1593/oz and closed at $1589.8/oz on Thursday trading session.

In the Indian markets, prices ended on negative note in the yesterday trading session and closed at Rs29389/10 gms after touching an intra-day low of Rs. 29260/10 gms on Thursday. Depreciation in the Indian rupee cushioned sharp decline in prices.


Silver

Spot silver prices ended on negative note by 0.3 percent on Thursday However, weakness in DX, favourable economic data from US along with optimistic global market sentiments cushioned sharp downside in prices.

The white metal prices touched an intra-day low of $28.53 /oz and closed at $28.8/oz in yesterday's trade.

On the domestic front, prices ended on a negative note by 0.9 percent and closed at Rs. 54289/kg after touching an intra-day low of Rs. 54084/kg on Thursday. Depreciation in the Indian rupee prevented sharp declines in prices on MCX.


Outlook

In the intraday, we expect precious metals to trade on a negative note on the back of expectation of decline in inflation data from US. Further, expectation of favourable economic data from US showing growth in economy will pressure the demand for safe haven. However, weakness in DX will cushion sharp decline in prices. In the Indian markets, appreciation in the Indian Rupee will add further downside pressure on prices.