Expect precious metals to trade with upward bias: Angel

Gold
Spot gold prices ended with mild firmness by 0.02 percent. Gold prices gained initially after US Federal Reserve continued its bond buying program until jobs data improves substantially. Further, upward revision in the US nonfarm payrolls in the November and December 2012 supported an upside in the yellow metal.

Strength in the DX along with dovish statement by the European Central Bank President that the euro region might witness recovery in 2013 but there are more downside risks to the economy erased the earlier gains in the gold prices. ECB President also raised worries over strength in the currency, Euro which also dampened gold prices. The yellow metal touched a weekly high of $1,684.5/oz and closed at $ 1,666.89/ounce on Friday. On the MCX, Gold March contract ended 2.86 percent higher taking cues from mild strength in the spot gold and depreciation in the rupee. Gold prices on the MCX closed at Rs.30,795/10 gms on Friday after touching a weekly high of Rs.30,890/ 10gms.

China's gold production rose for a sixth consecutive year and hit a record 403 tonnes in 2012, keeping its ranking as the world's largest bullion producer, the Shanghai Securities News said on Thursday

Silver
Spot silver declined 1.23 percent week on week. Silver prices declined taking cues from fall in the base metals pack coupled with strength in the DX. Renewed worries of the Euro zone also added to the losses. However, positive data from the US and China cushioned fall in the silver prices.

The white metal touched a weekly low of $ 31.26/oz and closed at $ 31.39 per oz on Friday. In the Indian markets, MCX silver prices fell 0.5 percent and closed at Rs. 58,212/kg on Friday and touched a weekly low of Rs. 57,966/ kg. Fall in the spot silver weighed on the prices of silver on MCX. However, depreciation in the Indian rupee cushioned fall in the silver prices on MCX

Outlook
In today's session we expect precious metals to trade with upward bias taking cues from firm global market sentiments along with weakness in the DX. However, investors might adopt a cautious approach as European Finance ministers meet today to discuss over the aid to Cyprus and Greece. Political turmoil in Spain and Italy are creating bearish market sentiments which might restrict the gains. On MCX, depreciation in the rupee is expected to add to the gains.

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