Commodities

Gold and silver daily review (September 18, 2012)

Contributed by Angel Broking

Gold

Spot gold prices declined 0.6 percent taking cues from weak global market sentiments and mixed movement in the US Dollar Index (DX). Doubts that whether the stimulus measures might be enough to contain revive the global economy led to risk in risk aversion amongst mar ket participants.

The yellow metal touched a low of $1,754.09/oz and closed at $1,761.0/oz on Monday. On the MCX, Gold October contract swung between gains and losses and declined 0.1 percent taking cues from bearishness in the spot prices and appreciation in the Indian rupee. Gold prices on the MCX closed at Rs.31,811 gms on day after touching a low of Rs. 31,751/ 10gms.

Silver

Spot silver prices declined 1.2 percent taking cues from weakness in the gold prices along with bearishness in the base metals pack. Mixed movement in the DX also exerted downside pressure on the silver prices in yesterday's session.

The white metal touched a low of $33.78/oz and closed at $34.21/oz on Friday. In the Indian markets, MCX silver prices also fell by 0.9 percent tracking spot prices and closed at Rs. 63,761/kg after touching low of Rs.63,605/kg on Monday. Appreciation in the Indian rupee also exerted downside pressure on the silver prices.

Outlook

In today's session, we expect precious metals to trade with negative bias due to mixed global market sentiments along with strength in the DX. In the Indian markets depreciation in the Rupee will pressurize prices on the MCX.