Commodities

Gold and silver daily review (November 01, 2012)

Contributed by Angel Broking

Gold

Spot gold prices increased around 0.7 percent in yesterday's trading session taking cues from rise in risk appetite in the global market sentiments.

Additionally, weakness in the DX also supported an upside in the prices. The yellow metal touched an intra-day high of $1,726/oz and closed at $1,720.10/oz in yesterday's trading session.

On the MCX, Gold December contract gained by 0.1 percent and closed at Rs.31,105/10 gms after touching an intra-day high of Rs.31,159/10 gms on Wednesday. However, sharp upside in the prices was capped as a result of appreciation in the Indian Rupee.

Silver

Taking cues from rise in gold prices along with upside in the base metals complex, Spot silver prices increased by 1.3 percent in yesterday's trade.

Additionally, a weaker DX also acted as a positive factor for the prices. The white metal prices touched an intra-day high of $32.4/oz and closed at $32.20/oz yesterday.

On the domestic front, prices gained by 0.8 percent and closed at Rs.59,881/kg after touching an intra-day high of Rs.60,016/kg on Wednesday. Appreciation in the Indian Rupee prevented further upside in the prices on the MCX.

Outlook

In today's session we expect precious metals to trade on a bearish note due to weak global market sentiments along with strength in the DX. Investors are also awaiting unemployment data from the U.S. So they are following a wait and watch stance. In the domestic market depreciation in the Indian rupee is expected to support an upside in the precious metals on MCX.