Bullion metal prices ended higher on Monday, 22 April 2013. Prices of gold and silver rose following bargain hunting, short covering and strong demand for physical gold seen worldwide. Traders though that recent sell off in bullion prices were over done.
Gold for June delivery ended higher by $25.6 (1.8%) at $1,421.2 an ounce on the Comex division of the New York Mercantile Exchange on Monday.
May silver ended higher by $0.36 cents (1.6%) at $23.32 an ounce on Monday.
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.
The other bullish news early this week is the Group of 20 nations at its weekend meeting in Washington, D.C., gave tacit approval of the Bank of Japan's aggressive monetary policy action recently. Such also hints the major central banks of the world may want to continue their own aggressive monetary policy easing measures for at least the next several months. That would also be a positive for the raw commodity sector, including the precious metals.
In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.1% on Monday.
Today's economic data at Wall Street was limited to just one item of note. Existing home sales fell 0.6% from a downward revised 4.95 million (from 4.98 million) in February to 4.92 million in March. The consensus had expected existing home sales to increase to 5.01 million.
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Inventories managed to eke out a small gain, rising 1.6% to 1.93 million. That represents a 4.7-month supply at the current sales rate, which is down from a 6.2-month supply a year ago. According to the National Association of Realtors, an ideal inventory level is around a 6-month supply.
At the MCX, gold prices for June delivery closed higher by Rs 316 (1.2%) at Rs 26,363 per ten grams. Prices rose to a high of Rs 26,542 per 10 grams and fell to a low of Rs 26,184 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed higher by Rs 264 (0.6%) at Rs 43,687/Kg. Prices opened at Rs 43,550/kg and rose to a high of Rs 44,070/Kg during the day's trading.
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