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Mixed finish for bullions

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Capital Market
Last Updated : Aug 27 2013 | 10:55 AM IST

Firm dollar pushes gold prices lower

Bullion metals ended mixed on Monday, 26 August 2013. Gold prices finished lower as investors digested a weaker-than-expected durable-goods report, as well as data last week that showed a record daily inflow for gold exchange-traded products.

Gold for December delivery fell $2.70, or 0.2%, to settle at $1,393.10 an ounce on the Comex division of the New York Mercantile Exchange.

September silver tacked on 27 cents, or 1.2%, to $24.01 an ounce.

The key outside markets were in a mildly bearish daily posture for the precious metals markets Monday. The U.S. dollar index was firmer which was mildly bearish for the precious metals.

Gold got an early lift in U.S. trading Monday when it was reported U.S. durable goods orders fell a much-weaker-than-expected 7.3% in July. Monday's durable goods and last Friday's weaker U.S. housing data has thrown some cold water on notions the U.S. Federal Reserve will start to taper its monthly bond-buying program, also known as quantitative easing, in September. That rallied the gold market on Friday.

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Most markets were calmer to start the trading week, as the U.K. observed a public holiday on Monday and as the unofficial last week of summer leads up to the U.S. Labor Day holiday next Monday. Next week will see traders back in full force as the summer vacations are over and as major economic data is released, capped off by the U.S. jobs report on Friday, 6 September.

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First Published: Aug 27 2013 | 9:45 AM IST

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