Commodities

Gold and silver daily review (October 12, 2012)

Contributed by Angel Broking

Gold

Spot gold prices gained 0.4 percent due to upbeat global market sentiments and thereby rise in the risk appetite amongst the market participants tracking positive data from the US economy. This led to decline in the decline in demand for the US Dollar Index (DX). This in tur n supported an upside in the gold prices.

The yellow metal touched an intra-day high of $1,774.70/oz and closed at $1,768.20/oz on Thursday. On the MCX, Gold October contract ended 0.4 percent lower on the back of appreciation in the Indian rupee. Gold prices on the MCX closed at Rs.31,321/10 gms on Thursday after touching an intra-day low of Rs. 31,283/ 10gms.

Silver

Spot silver prices gained 0.1 percent taking cues from strength in the spot gold prices along with bullishness in the base metals pack. Additionally, weakness in the DX also acted as a supportive factor for the upside in the silver prices.

The white metal touched an intra-day high of $34.33/oz and closed at $33.99/oz on Thursday. In the Indian markets, MCX silver prices fell 0.6 percent on the back of appreciation in the Indian rupee and closed at Rs. 61,778/kg after touching an intra-day high of Rs.61,731/kg on Thursday.

Outlook

In the intraday, we expect precious metals to trade on a positive note on the back of firm global market sentiments along with weakness in the DX. In the domestic markets appreciation in the Indian rupee will cap sharp gain in the precious metals on the MCX.