Commodities

Gold and silver daily review (October 09, 2012)

Contributed by Angel Broking

Gold

Spot gold prices declined 0.3 percent due to bearish global market sentiments a long with strength in the DX. Further rise in the risk aversion was witnessed as European Finance ministers meeting began yesterday to resolve the sovereign debt crisis.

The yellow metal touched a low of $ 1,766.14 per ounce and settled at $1,774.29 per ounce on Monday. In the domestic markets MCX Gold prices gained 1.6 percent due to sharp depreciation in the Indian rupee. MCX gold prices settled at Rs.31, 331 per 10gms after touching a high of Rs. 31,362 per 10gms in yesterday's session.

Silver

Spot silver prices also declined 1.5 percent taking cues from bearishness in the spot gold prices along with weakness in the base metal pack. Additionally strength in the DX also exerted downside pressure on the spot silver prices.

The white metal touched an intra-day low of 3$3.72 per ounce and settled at $34.0 per ounce on Monday. In the domestic markets silver prices on MCX swung between gains and losses and settled 0.4 percent down. Sharp downside in the prices was cushioned on the back of depreciation in the Indian rupee in yesterday's session.

Outlook

In the intraday, we expect precious metals to trade with negative bias taking cues from mixed global market along with strength in the DX. In the domestic markets depreciation in the Indian rupee will exert downside pressure on the precious metals on the MCX.