Commodities

Gold and silver daily review (October 04, 2012)

Contributed by Angel Broking

Gold

Spot gold pri ces swung between gains and losses and settled 0.1 percent higher taking cues from upbeat global market sentiments triggered by p ositive economic data from the US economy in the later part of the evening on Wednesday. However, sharp rise in the spot gold pric es were capped on the back of strength in the DX.

The yellow metal touched a high of $1,781.70/oz and closed at $1,778.54/oz on Wednesday. In the domestic markets gold prices fell 0.13 percent due to appreciation in the Indian rupee. Gold prices on the MCX closed at Rs.30,993/10 gms after touching a low of Rs. 30,959/10 gms on Wednesday.

Silver

Spot silver prices ended on a flat note taking cues from firmness in the gold prices. While bearishness in the base metal prices and strength in the DX capped sharp gains in the spot silver prices on Wednesday.

The white metal touched an intra-day high of $34.84/oz and closed at $34.59/oz on Wednesday. In the domestic markets appreciation in the Indian rupee caused MCX silver prices to decline 0.98 percent. MCX Silver prices closed at Rs. 62,318/kg after touching a high of Rs.62,252/kg on Wednesday.

Outlook

In the intraday, we expect previous metals to trade with upward bias taking cues from firmness in the global markets along with weakness in the DX. Further, weakness in the ADP Non Farm jobs data might cause the US Federal Reserve to continue its bond buying program further. In the domestic markets appreciation in the Indian rupee will act as a bearish factor for the precious metals on the MCX.