Commodities

Gold and silver daily review (October 19, 2012)

Contributed by Angel Broking

Gold

Spot gold prices declined 0.5 percent on the back of weak global sentiments taking cues from unfavorable jobs data of US economy. Further, strength in the Dollar Index also exerted downside pressure on the gold prices. Further, reports that the Chinese government might not provide big stimulus after observing positive industrial production and retail sales data from the nation weighed on the gold prices.

The yellow metal touched a low of $1,737.80 per ounce and settled at $1,741.09 per ounce on Thursday. In the domestic markets however, prices gained 0.8 percent due to depreciation in the Indian rupee. MCX gold prices touched a high of Rs 31,392 per 10 gms and closed at Rs. 31,375 per 10 gms in yesterday's session.

Silver

Spot silver prices also fell 1.1 percent taking cues from bearishness in the spot gold prices along with firmness in the entire base metals except copper.

The white metal touched a high of $33.28 per ounce and settled $32.78 per ounce on Thursday. In the domestic markets prices gained 0.3 percent taking cues from rise in the spot silver prices and depreciation in the Indian rupee. MCX silver prices touched a high of Rs30,978 per kg and closed at Rs.60,732 per kg in yesterday's session.

Outlook

In today's session we expect precious metals to trade with negative bias taking cues from bearish global markets along with strength in the DX. In the domestic markets however, depreciation in the Indian rupee is expected to cushion sharp fall in the prices.