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Dec 03, 2012, 12.28 PM IST | Source: Moneycontrol.com

Silver to remain range bound on positive Asian cues: Karvy

Karvy Commodities Broking has come out with its report on Gold and Silver. The research firm expects Silver to remain range bound as positive Asian sentiments and may support gains while weak Euro-zone developments may continue to pressurize.

Karvy Commodities Broking has come out with its report on Gold and Silver.  The research firm expects Silver to remain range bound as positive Asian sentiments and may support gains while weak Euro-zone developments may continue to pressurize.

Gold: Today morning Gold rallied from its biggest weekly drop in more than five months as investor holdings in exchange- traded products advanced to a record. Holdings have climbed 9.5 percent since the end of July, the data show. U.S. Mint sales of American Eagle gold coins more than doubled in November to the highest since July 2010, its website showed. Going ahead, we expect prices to trade in a limited range as concern of Fiscal cliff to play the role in current month. President Barack Obama and Republicans in Congress are deadlocked in talks to avoid a so-called fiscal cliff, or USD 600. From economic data front, manufacturing numbers from Euro-zone are likely to show a mixed picture of the economy which may result in to a small correction in as shared currency to weigh on gold prices during European market hours. Likewise, US ISM numbers are likely to paint a growing economic picture, which will dollar friendly to limit gains in this metal.

Silver: Today morning, Silver prices are trading up by USD 33.71 at Comex platform supported by higher Chinese manufacturing release and Asian optimism. However, the gains are likely to remain subdued in the European session. The shared currency may remain weak amidst weak PMI numbers and concerns of down gradation of its stability fund, which is likely to increase the borrowing cost of nations who all are being funded by the ESM. Further positive US releases and higher construction activity to near four years high may continue to pressurize silver prices.  Overall we expect Silver to remain range bound as positive Asian sentiments and may support gains while weak Euro-zone developments may continue to pressurize.

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