Outlook On Silver,Gold(19marc) : Karvy Commtrade Ltd
Published on Friday, March 19th, 2010 at 5:47 PMAuthor: onlinecommoditycalls (1958 Articles)
SILVER
Silver largely tracked base metals and closed down despite firmer gold prices. US silver futures fell nearly 0.6 percent and closed down at $17.42/oz on Comex.
Base metals’ complex on LME declined 0.35 percent yesterday which drove silver prices down. Firmer dollar also reduced silver’s alternative investment demand. Weaker equities supplemented the fall in silver prices.
The MSCI world index for stocks lowered 0.48 percent. IShares silver holdings maintained its holdings at 9302.58 MT yesterday. MCX silver futures traded in the range of Rs. 26,957 – Rs. 27,2224/kg before closing 0.23 percent lower at Rs. 27,106/kg yesterday.
Weaker rupee limited the fall of silver prices in domestic markets.
Outlook
Silver is taking further beating in Asia as firmer dollar keeps commodity prices checked. Base metals on LME are trading with no significant movements and are almost flat.
GOLD
Gold managed to end higher yesterday despite a resurgent dollar, as Greece debt issues spurred gold’s safe haven demand. Yesterday’s trading was slightly mixed as falling euro led some fall in gold prices below $1,120/oz during European hours but safe-haven demand pushed prices to close higher. Other than Greece debt issues, the euro also fell on reports that showed euro zone trade balance fell unexpectedly to -€2.3 bn for January month against €7 bn in the month before.
US gold futures for April delivery rose 0.29 percent to $1,127.50/oz.
The dollar index rose after two days and closed 0.74 percent higher, mainly on weaker euro.
The MSCI world index for stocks declined 0.48 percent. Crude oil fell 0.88 percent to $82.20/barrel.
SPDR Gold Trust maintained its gold holdings at 1115.51 MT as on Mar 18.
In India, declining rupee and some festival buying on the beginning of Navratri season supported bullion prices.
MCX gold futures gained more than Comex’s gold futures and closed 0.5 percent higher at Rs. 16,768/10 gm. Indian rupee slipped 0.22 percent to 45.4544 yesterday.
Outlook
Gold is $3 down to $1,124.60/oz in Asia and may trade sideways during the day on lack of any significant economic cues. Germany releases its producers’ price index for February month which shows a moderate rise as compared to prior number. This may not have significant impact on the markets. We can expect week-end profit taking may instigate some buying at lower levels. MCX gold futures are expected to open flat.
Courtesy: Karvy Commtrade Ltd.
Silver futures are expected to trade sideways and will look to gold and base metals for further price direction. MCX silver futures may open flat with sideways trading pattern for the day.
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Even I expect the same because of Rising Dollar can pushes commodities down..Gold support 16,621/16,510 resistance16,782/16,838.Silver support 26,840 Resistance 27,075/27,280