Commodities

Gold and silver daily review (October 31, 2012)

Contributed by Angel Broking

Gold

Spot gold prices swung between gains and losses and finally settled on a flat note today taking cues from upbeat global market sentiments which led to rise in the risk appetite amongst market participants. Better corpo rate earnings of the Europe also supported an upside in the gold prices in the early part of the trade.

Further, weakness in the DX also acted as supportive factor for the gold prices in yesterday's session. Sharp gains were not witnessed as the New York markets remained closed as Hurricane Sandy hit the east coast of U.S.

The yellow metal touched an intra-day high of $1,715.39/oz and closed at $1,708.9 on Tuesday. On the MCX, Gold October contract ended on a flat note taking cues from the spot gold prices and depreciation of the Indian Rupee. Gold prices on the MCX closed at Rs.31,089/10 gms after touching an intra-day high of Rs. 31,155/ 10gms.

Silver

Spot silver prices gained 0.2 percent higher taking cues firmness in the spot gold prices and strength in the base metals pack. Weakness in the DX also acted as a supportive factor of the silver prices on Tuesday.

The white metal touched an intra-day high of $32.12/oz and closed at $31.8/oz on Tuesday. In the Indian markets, MCX silver prices settled on a flat note after trading firm in most part of the trading session. Prices closed at Rs. 59,399/kg on Tuesday after touching an intra-day high of Rs.59,820/kg. Depreciation in the Indian rupee also acted as a supportive factor for the MCX silver prices.

Outlook

In today's session we expect precious metals to trade with upward bias on the back of positive global market sentiments along with weakness in the DX. Investors are also awaiting unemployment data from the U.S. So they are following a wait and watch stance. In the domestic market depreciation in the Indian rupee is expected to support an upside in the precious metals on MCX.