Commodities » Precious Metals

Gold and silver daily review (March 22, 2013)

Contributed by Angel Broking

Gold

Spot gold prices increased by 0.5 percent in the yesterday trading on the back of worries over Cyprus bailout as ECB said it may cut the emergency fund to Cyprus bank after March 25 if a nation does not come with a plan to ensure bank solvency, driving investors to buy gold as safe haven. Further, expectation of further monetary policy easing from major central banks coupled with weakness in DX supported prices to trade green. The yellow metal touched an intraday high of $1616.36/oz and closed at $1614.1/oz in yesterday's trading session.

In the Indian markets, prices ended on positive note in the yesterday trading session and closed at Rs.29827/10 gms after touching an intra-day High of Rs. 29847/10 gms on Thursday. Appreciation in the Indian rupee prevented sharp gains in prices.


Silver

Taking cues from rise in gold prices, spot silver prices ended on positive note by 1.3 percent on Thursday. Further, positive US Manufacturing PMI data coupled with rise in US existing home sales data supported prices to trade positive. Additionally, favourable Philly Fed manufacturing Index from US along with weakness in DX acted as a positive factor for prices. However, weak global market sentiments along with negative economic data from Europe capped sharp upside movement in prices. Further, rise in unemployment claims from US prevented sharp rally in prices.

The white metal prices touched an intra-day high of $29.32 /oz and closed at $29.13/oz in yesterday's trade.

On the domestic front, prices ended on a positive note by 1.3 percent and closed at Rs. 55063/kg after touching an intra-day high of Rs. 55100/kg on Thursday. Appreciation in the Indian rupee capped sharp gains in prices.


Outlook

In the intraday, we expect precious metals to trade on a positive note back of worries over Cyprus bailout, driving investors to buy gold as safe haven. However, strength in DX may cap sharp upside movement in prices. In the Indian markets, depreciation in the Indian rupee will support prices to trade green.