Commodities

Gold and silver daily review (September 13, 2012)

Contributed by Angel Broking

Gold

Spot gold prices swung between gains and losses and finally settled on a flat note on Wednesday. German constitutional court ruling which approved the bailout fund with conditions led to positive market sentiments. This caused prices to gain in most part of the trade but witnessed long liquidation ahead of the decision by the US Federal Reserve policy makers on September 13, 2012.

The yellow metal touched a high of $1,746.20/oz and closed at $1,731/oz on Wednesday. On the MCX, Gold October contract also settled on a flat note tracking spot gold prices. However, appreciation in the Indian rupee capped sharp gain in the gold prices. Gold prices on the MCX closed at Rs.31,870/10 gms on Wednesday after touching a historical high of Rs.32,105/10 gms.

Silver

Spot silver prices declined 0.3 percent in yesterday's session tracking bearishness in the base metals pack. Weakness in the DX however cushioned sharp fall in the silver prices. Initially gains were witnessed taking cues from firmness in gold prices.

The white metal touched an intra-day low of $32.45/oz and closed at $33.27/oz on Wednesday. In the Indian markets, MCX silver prices fell 0.8 percent taking cues from weakness in the spot prices and appreciation in the Indian rupee and closed at Rs. 63,280/kg after touching a low of Rs.61,912/kg in yesterday's session.

Outlook

In today's session, we expect precious metals to trade with positive bias due to upbeat global market sentiments and weakness in the DX. Expectation that US policy makers might hint stimulus measures today and keep interest rates near to zero till 2015. In the Indian markets appreciation in the Rupee will cap sharp gains in the MCX prices.