Gold drops for sixth straight day
Bullion metal prices ended lower on Tuesday, 06 2013 at Comex. Gold and silver prices slid as investors wrestled with uncertainty about the Federal Reserve's timeline for reducing monetary stimulus. Gold dropped for sixth straight day.
Gold for December delivery ended lower by $19.9 (1.5%) at $1,282.5 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.
September silver ended lower by $0.20 (1%) at $19.52 an ounce on Tuesday.
In overnight news, there was more upbeat economic data coming out of the European Union on Tuesday. Germany's manufactured goods orders increased by 3.8% in June versus May. However, European stock markets languished in quiet, summertime trading. Asian stock markets were mostly weaker in dull trading as the world market place awaits fresh macro inputs. The Reserve Bank of Australia cut its main interest rate by 0.25%, to a record low of 2.5% on Tuesday.
The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.1% on Tuesday.
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Among economic data expected at Wall Street today, the June trade deficit narrowed to $34.2 billion from May's downwardly revised $44.1 billion (from $45.0 billion). That was the smallest monthly trade deficit since October 2009. The consensus expected the deficit to fall to $43.4 billion. In the advance estimate for second quarter GDP, the Bureau of Economic Analysis assumed the trade deficit widened slightly in June. This huge downward surprise will likely add at least 0.5 percentage points to second quarter growth.
June exports increased by $4.1 billion to $191.2 billion, representing the largest amount of exports, nominal or real, on record. On the flip side, imports fell by $5.8 billion to $225.4 billion. Nearly the entire decline in imports was due to a drop in petroleum-based demand (-$2.0 billion) and a softening in cell phone imports (-$1.5 billion).
At the MCX, gold prices for October delivery closed lower by Rs 242 (0.9%) at Rs 27,614 per ten grams. Prices rose to a high of Rs 27,966 per 10 grams and fell to a low of Rs 27,562 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed lower by Rs 227 (0.5%) at Rs 41,533/Kg. Prices opened at Rs 41,550/Kg and fell to a low of Rs 41,460/Kg during the day's trading.
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