Commodities » Precious Metals

Gold and silver daily review (March 20, 2013)

Contributed by Angel Broking

Gold

Spot gold prices increased by 0.5 percent in the yesterday trading session on the back of worries over Cyprus bailout as the Cyprus parliament rejected the euro zone proposal of levying taxes on the bank deposits, driving investors to buy gold as safe haven . However, strength in DX capped sharp gains in prices.

The yellow metal touched an intra-day high of $1615.16/oz and closed at $1612.79/oz in yesterday's trading session.

In the Indian markets, prices ended on positive note in the yesterday trading session on the back of depreciation in the Indian rupee and closed at Rs.29871/10 gms after touching an intra-day high of Rs. 29889/10 gms on Tuesday.


Silver

Taking cues from rise in gold prices, spot silver prices ended on positive note by 0.1 percent on Tuesday. However, weak global market sentiments coupled with strength in DX capped sharp upside movement in the prices.

The white metal prices touched an intra-day high of $29.08 /oz and closed at $28.87/oz in yesterday's trade.

On the domestic front, prices ended on a positive note by 0.7 percent and closed at Rs. 54707/kg after touching an intra-day high of Rs. 54810/kg on Tuesday. Depreciation in the Indian rupee supported prices to trade green.


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. Further, Cyprus parliament rejected the proposal of levying taxes on the bank deposits which led to concerns over the Euro Zone debt crisis will add further downside pressure. On MCX, depreciation in the Indian Rupee may cushion sharp downfall in prices. Investors will keep an eye on US FOMC Economic projections and FOMC statement.