Gold rises for first time in four sessions.
Bullion metal prices ended substantially higher on Tuesday, 03 September 2013 at Comex. Bullion metals ended substantially higher as bargain hunters stepped in to buy the early dip in prices. There was also safe-haven buying that surfaced during the day as it appears the U.S. Congress will support President Obama's effort to use military force against Syria.
Gold for December delivery ended higher by $15.9 (1.1%) at $1,412 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. Gold rose for first time in four sessions.
December silver surged 92 cents, or 3.9%, to $24.43 an ounce on Comex on Tuesday.
The gold market started to reverse modest early losses in late-morning dealingsabout the same time that news reports said U.S. congressional leaders are falling in line with Obama and his notion that Syria needs to be punished with U.S. firepower for its alleged use of chemical weapons against its population. U.S. traders came back to work from a long Labor Day weekend.
The important U.S. jobs report is out on Friday. The Bank of England and European Central Bank hold their monthly monetary policy meetings on Thursday. There is a Group of 20 nations meeting this week. The U.S. congress returns from its summer recess in mid-September and will immediately have to deal with pressing budget matters. There is an FOMC meeting in September, at which time many believe the U.S. Fed will decided to change its monetary policy.
Raw commodity markets saw some good news on Monday when upbeat Chinese manufacturing data was released. Chinese officials this week said their country's annual economic growth target of 7.5% will be met. There was also positive manufacturing data coming out of the U.S. and the European Union on Monday.
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Among economic data expected at Wall Street today, the ISM Index for August improved to 55.7 from 55.4 in July. That was better than expected as the consensus estimate called for a modest decline to 53.4.
Also, construction spending increased 0.6% in July after being flat in June. The July number was pretty much in-line with expectations. The data for June, however, improved from the prior report, which showed a 0.6% decline. Private construction spending was up 0.9% after declining 0.2% in June. That was paced by a pickup in nonresidential spending, which jumped 1.3% after declining 0.9% in June. Private commercial (+1.7%), manufacturing (+2.9%) and lodging (+6.1%) spending increased in July.
At the MCX, gold prices for October delivery closed higher by Rs 1,375 (4.1%) at Rs 34,439 per ten grams. Prices rose to a high of Rs 34,495 per 10 grams and fell to a low of Rs 32,940 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed higher by Rs 2160 (3.8%) at Rs 59,233/Kg. Prices opened at Rs 57,099/Kg and rose to a high of Rs 59,598/Kg during the day's trading.
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