Commodities

Gold and silver daily review (November 02, 2012)

Contributed by Angel Broking

Gold

Spot gold prices swung between gains and losses and finally settled 0.3 percent lower on the back of worries that positive data from the U.S. might cause the Federal Reserve to curtail its bond buying program. Additionally strength in the DX also exerted downside pressure on the gold prices in yesterday's session.

The yellow metal touched an intra-day low of $1,729.4/oz and closed at $1,714.09 on Thursday. On the MCX, Gold October contract fell 0.5 percent taking cues from bearishness in the spot gold prices along with appreciation of the Indian Rupee. Gold prices on the MCX closed at Rs.30,952/10 gms after touching an intra-day low of Rs. 30,936/ 10gms.

Silver

Spot silver prices swung between gains and losses and settled 0.1 percent higher on Thursday. Prices gained taking cues from gains in the base metals pack. However, strength in the DX along with bearishness in the gold prices capped sharp gains.

The white metal touched an intra-day high of $32.66/oz and closed at $32.25/oz on Thursday. In the Indian markets, MCX silver prices fell 0.3 percent and closed at Rs. 59,695/kg on Thursday and touched an intraday low of Rs.59,660/kg .

MCX silver prices had however remained firm for most part of the trading session and touched a high of Rs. 60,333 per kg taking cues from firmness in the spot silver prices. However, appreciation in the Indian rupee cushioned sharp fall in the MCX silver prices.

Outlook

In today's session we expect precious metals to trade on a bearish note as investors are following a wait and watch stance ahead of the unemployment rate from the U.S. today and elections in the U.S in the next week. However, strength in the DX along with mixed global market sentiments is expected to cap sharp gains in the precious metals. In the domestic market appreciation in the Indian rupee is expected to support an upside in the precious metals on MCX.