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Dull day for bullions

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Capital Market
Last Updated : Jun 24 2015 | 9:13 AM IST

Silver settles at its their lowest level since late April

Bullion metals finished lower on Tuesday, 23 June 2015 at Comexas expectations Greece could strike a deal with its creditors and avoid default helped dull the metal's safe-haven appeal and sent prices to their lowest settlement in more than two weeks. Strong daily gains in the U.S. dollar index also emboldened the sellers in gold and silver today.

August gold fell $7.50, or 0.6%, to settle at $1,176.60 an ounce on Comex that was the lowest finish since 8 June 2015.

July silver lost 40.5 cents, or 2.5%, to $15.737 an ounce, with prices settling at their lowest since late April.

Gold and silver markets traders also got some bearish Fed speak on Tuesday. Federal Reserve Governor Jerome Powell said the U.S. central bank will raise interest rates in September and again in December, if his economic growth projections prove accurate. He then said there is a 50-50 chance his economic forecast will pan out. San Francisco Fed President John Williams also recently predicted two Fed rate increases yet this year. The past several years of easy U.S. monetary policy have mostly worked in favor of the precious metals market bulls.

A batch of U.S. economic data released Tuesday had little impact on the gold and silver markets. Gold had trimmed losses in the immediate wake of data released early Tuesday showing that U.S. durable-goods orders fell more than expected in May. Weaker data could see the Fed delay delivery of its first interest-rate hike in nearly 10 years.

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First Published: Jun 24 2015 | 7:29 AM IST

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