See upside in MCX Silver on weakness in INR: Angel Comm

Angel Commodities has come out with its report on Gold and Silver. According to the research firm, Weakness in the spot silver prices exerted downside pressure on the silver prices. However, depreciation in the Indian rupee supported an upside in the silver prices on MCX.

Gold:

Spot gold prices pared gains of the previous day and declined 0.4 percent in the yesterday’s session. This was on account of ongoing European Central Bank (ECB) meeting which would give clues regarding the monetary policy of the region and further direction of the currency, Euro. A sell off was witnessed on the back of ECB President Mario Draghi comments that the economy is recovering but the strength in the Euro might dampen this recovery. Strength in the DX also pushed the prices of gold downwards. The yellow metal touched an intra-day low of $ 1662.8 per ounce and closed at $ 1,670.69 per ounce on Thursday. On the MCX, Gold April contract ended 0.3 percent higher on the back of depreciation in the Indian rupee. Gold prices on the MCX closed at Rs. 30,796/10 gms on Thursday after touching an intra-day high of Rs. 30,890/ 10gms.

Silver:

Spot silver prices declined 1.2 percent in yesterday’s session. The prices tracked the weakness in the spot gold prices. Weakness in the base metals pack along with firmness in the DX also exerted downside pressure on the silver prices. The white metal touched an intra-day low of $ 31.26/oz and closed at $ 31.4 per oz on Thursday. In the Indian markets, MCX silver prices ended 0.6 percent lower and closed at Rs. 58,041/kg on Thursday and touched an intra-day low of Rs 57,762/ kg. Weakness in the spot silver prices exerted downside pressure on the silver prices. However, depreciation in the Indian rupee supported an upside in the silver prices on MCX.

Outlook:

In today’s session, we expect bullion prices to trade in the negative territory taking cues from weak global market sentiments created after ECB President said that economic activity in the euro area is likely to gain momentum in later part of 2013 but there are more negative risks than the positive ones. This is expected to create risk aversion. However, weakness in the DX is expected to cushion fall in the prices. In the Indian markets depreciation in the Rupee will cushion fall in the MCX prices of precious metals.

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