Commodities

Gold and silver daily review (October 05, 2012)

Contributed by Angel Broking

Gold

Spot gold prices gained 0.6 percent taking cues from the positive global market sentiments along with weakness in the DX on Wednesday. Less than expected decline in the IS unemployment claims and Factory orders also raised positive sentiments. Further, affirmative statement by t he ECB President Mario Draghi that the bank is ready to buy bonds once the necessary conditions are met, eased concerns of the Euro zone debt.

The yellow metal touched a high of $1,794.90/oz and closed at $1,788.6/oz on Thursday. In the domestic markets gold prices fell 0.8 percent due to appreciation in the Indian rupee. Gold prices on the MCX closed at Rs.30,722/10 gms after touching a low of Rs. 30,671/10 gms on Thursday.

Silver

Spot silver prices gained taking cues from firmness in the gold prices and bullishness in the base metals pack. Additionally weakness in the DX also added to the gains of the white metal in yesterday's session.

The white metal touched an intra-day high of $35.09/oz and closed at $34.9/oz on Thursday. In the domestic markets appreciation in the Indian rupee caused MCX silver prices to decline 0.3 percent. MCX Silver prices closed at Rs. 62,105/kg after touching a low of Rs.61,891/kg in yesterday's session.

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. In the domestic markets appreciation in the Indian rupee will act as a bearish factor for the precious metals on the MCX.