Expect precious metals to remain volatile: Angel

Gold

Spot gold prices swung between gains and losses and settled 0.2 percent higher. Worries over the US fiscal cliff issues created bearish market sentiments while expectation of more stimulus announcement by the bank of Japan supported an upside in the gold prices. Weakness in the DX also acted as a supportive factor for the gold prices.

The yellow metal touched an intra-day high of $ 1,667.51/oz and closed at $ 1659.8 per ounce on Tuesday. On the MCX, Gold February contract ended 0.5 percent lower on account of appreciation in the Indian rupee. Gold prices on the MCX closed at Rs. 30,698/10 gms on Tuesday after touching a low of Rs. 30,661/ 10gms.

Silver

Spot silver prices rose 0.3 percent taking cues from trend in the spot gold prices. Weakness in the DX also supported an upside in the silver prices. The white metal touched an intra-day high of $ 30.2/oz and closed at $ 30 per oz on Tuesday. In the Indian markets, MCX silver prices fell 0.4 percent and closed at Rs. 57,472/kg on Tuesday and touched an intraday low of Rs. 57,270/ kg. Appreciation in the Indian rupee also pressurized silver prices on MCX.

Outlook: In the intra-day, we expect precious metals to remain volatile as the investors are adopting a cautious approach as the US fiscal cliff issue remains unresolved yet while US lawmakers resume talks over the same which is nearing the deadline. Weakness in the DX is likely to support an upside in the gold prices. In the domestic markets, appreciation in the Rupee will exert downside pressure on the MCX precious metal.

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