Commodities

Gold and silver daily review (October 01, 2012)

Contributed by Angel Broking

Gold

Spot gold prices swung between gains and losses and settled 0.1 lower week on week. Doubts amongst market sentiments that stimulus measures announced by the global central bankers might not be enough to revive growth in the economies along with renewed concerns of the Euro zone debt crisis created bearish market sentiments. Additionally, strength in the DX also exerted downside pressure on the gold prices.

The yellow metal touched a weekly low of $1,737.50/oz and closed at $1,770.69 oz on Friday. On the MCX, Gold October contract declined 0.9 percent week on week after touching a low of Rs.31091 per 10 gms and closed at Rs. 31,217 per 10 gms on Friday.

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, surged 0.23 percent and stood at 1320.78 tonnes till September 28, 2012 as against 1317.76 tonnes till September 21, 2012

Silver

Spot silver prices declined 0.09 percent marginally and settled at $34.46 per ounce on Friday on the back of weak global market sentiments triggered by renewed concerns of the Euro zone, with Spain debt issues creating bearish market sentiments. Weakness in the gold and base metal pack along with strength in the DX also exerted downside pressure on the spot silver prices in last week.

The white metal touched a weekly low $33.33/oz and closed at $34.46/oz while MCX silver prices fell by 0.92 percent and closed at Rs. 62,790/kg after touching weekly low of Rs.61,830 per kg on Friday. Appreciation in the Indian rupee acted as a bearish factor for the silver prices on MCX.

On a weekly basis, holdings in the iShares Silver Trust, increased by 0.15 percent to 9925.6 tonnes till September 28th 2012 from previous level of 9940.66 tonnes till September 21st 2012

Outlook

In today's session, we expect precious metals to trade with a negative bias on the back weak global market sentiments along with strength in the DX. However, in the domestic markets depreciation in the Indian rupee will however cushion sharp fall in the MCX prices.