Commodities » Precious Metals

Gold and silver daily review (March 18, 2013)

Contributed by Angel Broking

Gold

Spot gold prices increased by 0.9 percent in the last week on the 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, sharp gains in the prices were capped due to the favorable economic data from US showing growth in economy which pressured the demand for safe haven. The yellow metal touched a weekly high of $1599.1/oz and closed at $1591.84/oz on Friday trading session.

In the Indian markets, prices increased by 0.1 percent and closed at Rs. 29359/10 gms on Friday after touching a high of Rs.29594 /10 gms in the last week. Appreciation in the Indian Rupee capped sharp gains in the prices on MCX.


Silver

Spot silver prices ended on negative note by 0.8 percent on weekly basis due to unfavourable economic data from Europe and UK. However, weakness in DX coupled with optimistic global market sentiments cushioned sharp downside in prices.

The white metal prices touched a weekly low of $28.53/oz and closed at $28.7/oz in the last trading session of the week.

On the domestic front, prices ended on a negative note by 1.2 percent on the back of appreciation in the Indian rupee and closed at Rs. 54192/kg on Friday after touching a weekly low of Rs. 54084/kg.


Outlook

In the intraday, we expect precious metals to trade on a negative note on the back of rise in risk aversion in the global market sentiments coupled with strength in DX. In the Indian markets, depreciation in the Indian Rupee will cushion sharp downfall in prices on MCX.