Gold ends little down while silver climbs up
Bullion metal prices ended mixed on Tuesday, 25 June 2013 at Comex. Comex gold futures ended little down while and silver futures prices ended the U.S. day session higher. A string of positive economic data reinforced expectations the Federal Reserve will begin to slow the pace of monetary stimulus, lifting the dollar and sending government bond yields higher.
Gold for August delivery ended lower by $2 (0.1%) at $1,275.1 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.
July silver ended higher by $0.04 (0.2%) at $19.53 an ounce on Tuesday.
There was a bit more risk appetite in the world market place on Tuesday, partly due to news China central bank officials said the cash crunch in China has been brought under control and the recent volatility in its financial markets was just temporary. Worries the financial system in the world's second-largest economy could seize up had the entire world market place jittery the past few days.
Goldman Sachs cut its outlook on gold prices by more than 9% to $1,300 an ounce for the end of this year, and by more than 17% to $1,050 an ounce for the end of 2014. Later in the day, HSBC followed suit, trimming its estimates for average gold prices through 2015. HSBC lowered its average 2013 price by about 9% to $1,396 an ounce, while setting the 2014 price at $1,435 an ounce, and the 2015 price at $1,395 an ounce.
UBS cut its outlook on silver prices a day earlier. The bank slashed its one-month silver forecast 32.7% to $17.50 a troy ounce and cut its three-month silver forecast 26.8% to $20.50 an ounce.
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The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% on Tuesday.
Among economic data expected at Wall Street, new home sales topped expectations increasing from an upwardly revised 466,000 (from 454,000) in April to 476,000 in May. The consensus pegged new home sales at 460,000.
Durable goods orders increased 3.6% for a second consecutive month in May. The consensus expected durable goods orders to increase 3.0%. As expected, a large portion of the gain came from the transportation sector. Defense and nondefense aircraft orders increased 39.2% in May after increasing 23.6% in April. Surprisingly, the gains in durables did not end with the transportation sector. Excluding transportation, durable goods orders rose 0.7% in May after increasing 1.7% in April. The consensus expected these orders to fall 0.5%.
The Conference Board's Consumer Confidence Index rose to 81.4 in June, up from 74.3 in May and at the highest point since January 2008. The consensus expected consumer confidence to weaken slightly and drop to 75.0.
At the MCX, gold prices for August delivery closed lower by Rs 166 (062%) at Rs 26,559 per ten grams. Prices rose to a high of Rs 26,775 per 10 grams and fell to a low of Rs 26,512 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed lower by Rs 171 (0.41%) at Rs 40,663/Kg. Prices opened at Rs 40,702/kg and fell to a low of Rs 40,360/Kg during the day's trading.
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