Rupee appreciation to cap sharp gains in gold, silver:Angel
Angel Commodities has come out with its report on international commodities. According to the research firm, in intraday trade, precious metals are expected to trade on a positive note on the back of upbeat global markets coupled with weakness in the DX. In the Indian markets, appreciation in the Rupee will cap sharp gains in prices.
June 04, 2013 / 16:11 IST
Angel's report on international commodities
Spot gold prices gained 1.8 percent in yesterday’s trading session the back of weakness in the US Dollar Index (DX). Further, rise in risk appetite in the global market sentiments also acted as a positive factor for the prices. Further, expectations that US Federal Reserve will not cut its bond buying program acted as a supportive factor for the prices metal touched an intra-day high of USD 1416.11/oz and closed at USD 1411.10/oz in yesterday’s trading session. In the Indian markets, prices ended on positive note by and closed at Rs.27179/10 gms after touching an intra 27221/10 gms on Monday. Depreciation in the Indian Rupee supported an upside in the prices.Silver
Taking cues from rise gold prices along with upside in the base metals complex, Spot silver prices rose by 2.3 percent in yesterday’s trading session. Additionally, weakness in the DX supported an upside in the prices. However, sharp upside in the prices was capped as a result of unfavourable economic data from US. The white metal prices touched an intra-day high of USD 22.96/oz and closed at USD 22.70/oz in trade. On the domestic front, prices gained by 1.8 percent on account of depreciation in the Indian Rupee and closed at Rs.4 touching an intra-day high of Rs.44686/kg on Monday.Outlook: In intraday trade, we expect precious metals to trade on a positive note on the back of upbeat global markets coupled with weakness in the DX. Further, expectation that the Federal Reserve will not reduce stimulus measures will also support upside in prices. In the Indian markets, appreciation in the Rupee will cap sharp gains in prices.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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