Commodities

Gold and silver daily review (October 23, 2012)

Contributed by Angel Broking

Gold

Spot gold prices gained 0.5 percent due to rise in the risk appetite am ongst market participants and thereby increasing the appeal for the yellow metal . However, sharp gains were restricted as investors were cautious over Federal Reserve Open Market Committee (FOMC) meeting outc ome scheduled on October 24th 2012 along with strength in the DX.

The yellow metal touched a high of $1,729 per ounce and settled at $1,728.84 per ounce on Monday. In the domestic markets, MCX Gold prices declined 0.6 percent on the back of appreciation in the Indian Rupee and settled at Rs. 31,068 per 10 gms after touching a low of Rs. 30,982 per 10 gms on Monday.

Silver

Spot silver prices gained 1.2 percent taking cues from strength in the spot gold prices. However, sharp gains were capped on the back of weakness in the base metals pack along with strength in the DX.

The white metal touched a high of $32.44 per ounce and settled at $32.39 per ounce. MCX silver prices fell 0.4 percent due to appreciation in the Indian rupee and settled Rs. 59,614 per kg after touching a low of Rs.59,325 per kg in yesterday's session.

Outlook

In today's session, we expect precious metals to trade on a firm note on the back of mixed global market sentiments along with weakness in the DX. Further, investors are adopting a cautious approach ahead of the FOMC meeting tomorrow. In the domestic market, appreciation in the Indian rupee is expected to cap sharp gains in the precious metals on MCX.