Bullion metal prices ended substantially higher on Monday, 29 April 2013 as expectations of continued easy-monetary policies among key central banks were in play. The key outside markets were also in a bullish posture for the precious metals to start the new trading week, as the U.S. dollar index was lower and crude oil prices were higher.
Gold for June delivery ended higher by $13.8 (1%) at $1,467.4 an ounce on the Comex division of the New York Mercantile Exchange on Monday.
July silver ended higher by $0.38 cents (1.6%) at $24.17 an ounce on Monday.
The world economic data slate becomes heavier as the week progresses. The precious metals markets are keenly awaiting those new market inputs. The Federal Reserve on Wednesday will announce its latest monetary policy actions. While no interest rate changes are anticipated from the Fed, the FOMC statement on Wednesday afternoon will be very closely scrutinized for clues on future Fed monetary policy. The European Central Bank holds its monthly meeting on Thursday. The monthly U.S. jobs report is due out Friday morning.
In overnight news, Italian bond yields fell to a 2.5-year low at the latest 10-year bond auction as investors embraced the new Italian coalition government. A German short-term government debt auction on Monday saw funding costs at the lowest level since November, at virtually zero return for the debt buyers. This underscores the keener European investor uncertainty regarding the overall health of the European Union. Euro zone business confidence declined in April, it was reported on Monday, in the latest dour economic data coming out of the EU.
In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.3% on Monday.
In today's economic data, personal income and spending both rose 0.2% in March. The consensus expected income to increase 0.3% and spending to rise 0.1%. The March income and spending data were already incorporated in the first quarter GDP report that was released last Friday. The only new information was that January income growth was revised up to -3.6% from -3.7% and that January spending growth was revised down to 0.3% from 0.4%. The February growth rates were unrevised.
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In addition, pending home sales for March rose 1.5%, which was better than the 0.1% increase forecast by the consensus. Today's reading follows last month's decline of 0.4%.
At the MCX, gold prices for June delivery closed lower by Rs 38 (0.14%) at Rs 27,151 per ten grams. Prices rose to a high of Rs 27,329 per 10 grams and fell to a low of Rs 27,063 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed higher by Rs 241 (0.53%) at Rs 45,284/Kg. Prices opened at Rs 45,150/kg and rose to a high of Rs 45,590/Kg during the day's trading.
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