Bullion metal prices ended higher on Thursday, 25 April 2013. Prices of gold and silver rose as traders and investors continued to step in to buy the recent big dip in prices. Prices rose following physical demand for the precious metal, prospects for easier global monetary policies and a weaker U.S. dollar. Prices witnessed big one-day gains.
Gold for June delivery ended higher by $38.3 (2.7%) at $1,462 an ounce on the Comex division of the New York Mercantile Exchange on Thursday.
May silver ended higher by $1.31 cents (5.7%) at $24.14 an ounce on Thursday.
Strong demand has surfaced for physical gold (bars, coins, jewelry) in the wake of this month's collapse in prices. This is a major factor working to lift gold prices up from last week's lows and beginning to suggest a market bottom is in place. Reports this week have said there are shortages of gold bars and coins in some countries, with gold retailers jacking up their charged premiums over the spot price of gold.
Reports at midday on Thursday said the U.S. has accused Syria's regime of using chemical weapons against its own people prompted fresh safe-haven demand for gold as prices moved to the daily high when that news was reported. This situation will continue to be closely monitored by the market place.
The International Monetary Fund reported overnight that Russia, Turkey and other Asian nations increased their official gold reserves in March. The report did not include the timeframe in April when the big downdraft in prices occurred. The May IMF report will be very closely scrutinized to see how central banks responded to the big sell off in gold prices in April.
In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.1% on Thursday.
More From This Section
Today's economic news was limited to weekly claims data. The initial claims level fell to 339,000 for the week ending April 20 from an upwardly revised 355,000 (from 352,000) for the week ending April 13. The consensus expected the initial claims level to drop to 351,000.
After several weeks of volatility following seasonal adjustment problems associated with the Easter holiday period, the initial claims level has again returned to its previous trend. The Department of Labor announced that the period of large swings in the weekly claims level is ending.
At the MCX, gold prices for June delivery closed higher by Rs 653 (2.5%) at Rs 27,041 per ten grams. Prices rose to a high of Rs 27,097 per 10 grams and fell to a low of Rs 26,449 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed higher by Rs 2282 (5.32%) at Rs 45,174/Kg. Prices opened at Rs 42,895/kg and rose to a high of Rs 45,330/Kg during the day's trading.
Powered by Capital Market - Live News