Commodities

Gold and silver daily review (September 25, 2012)

Contributed by Angel Broking

Gold

Spot gold prices declined 0.5 percent and settled at $1,763.7 per oz on the back of weak global market sentiments triggered by the discord amongst Euro pean leaders over the time table of the banking union and worries over containing the Euro zone debt crisis. Additionally strength in the DX also added pressure on the gold prices.

The yellow metal touched low of $1,755.30/oz and closed at $1,765.7/oz on Monday. On the MCX, Gold October contract declined 0.4 percent tracking bearishness in the spot gold prices. Depreciation in the Indian rupee however cushioned sharp fall in the prices.

Silver

Spot silver prices declined 1.6 percent taking cues from weak global market sentiments along with bearishness in the gold prices and strength in the DX. Further weakness in the base metals pack also exerted downside pressure on the silver prices.

The white metal touched a low of $33.60/oz and closed at $34.94/oz while MCX silver prices fell by 1.5 percent and closed at Rs. 62,412/kg after touching a low of Rs.62,034 per kg on Monday. Depreciation in Indian currency cushioned sharp fall in the Silver prices on MCX.

Outlook

We expect precious metals to trade on a negative note on the back of mixed global market sentiments along with strength in the DX. Discord amongst European leaders over the timetable of the banking union and thereby worries over containing Euro zone debt are causing bearish market sentiments.

In the domestic markets depreciation in the Indian rupee will cushion sharp fall in the prices of precious metals on MCX.