Commodities » Precious Metals

Gold and silver daily review (March 21, 2013)

Contributed by Angel Broking

Gold

Spot gold prices decreased by 0.4 percent in the yesterday trading session as the US Federal Reserve cut its forecast for Unemployment. Further, Cyprus government is looking forward to the alternatives to avoid banking collapse in the nation pressured the demand for safe haven. However, expectation of further monetary policy easing from major central banks coupled with weakness in DX cushioned sharp decline in prices. The yellow metal touched an intra-day low of $1602.94/oz and closed at $1605.9/oz in yesterday's trading session.

In the Indian markets, prices ended on negative note in the yesterday trading session and closed at Rs.29681/10 gms after touching an intra-day low of Rs. 29661/10 gms on Wednesday. Depreciation in the Indian rupee prevented sharp downfall in prices.


Silver

Taking cues from fall in gold prices, spot silver prices ended on negative note by 0.4 percent on Wednesday. However, optimistic global market sentiments coupled with weakness in DX cushioned sharp decline in prices.

The white metal prices touched an intra-day low of $28.6 /oz and closed at $28.8/oz in yesterday's trade.

On the domestic front, prices ended on a negative note by 0.7 percent and closed at Rs. 54331/kg after touching an intra-day low of Rs. 54279/kg on Wednesday. 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. Further, expectation of positive economic data from major global economies will act as a positive factor for the prices. In the Indian markets sharp upside in the prices will be prevented as a result of appreciation in the Rupee.