Prices stretch losses from the previous session
Bullion metal prices ended lower on Monday, 23 September 2013 at Comex. Precious metals traded lower today, extending Friday's losses. Prices stretched losses from the previous session on indications that a reduction in U.S. monetary stimulus is still possible by the end of the year.
December gold brushed a session low of $1317.90 per ounce in morning action and settled with a 0.4% loss at $1327.30 per ounce
December silver chopped around slightly below the unchanged line after dipping to a session low of $21.67 per ounce. It eventually settled with a 0.2% loss at $21.87 per ounce.
The market place on Monday continued to reflect upon last week's surprise move by the U.S. Federal Reserve to not start to wind down its monthly bond-buying program.
Traders and investors are awaiting fresh clues from the Fed on its future monetary policy moves, especially the timing of such moves. There are several Federal Reserve officials speaking this week, including three on Monday, and their comments will be closely scrutinized by the market place.
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The gold and silver markets did slightly trim their losses on following new reports of the two Fed officials' remarks Monday morning. Also Monday there were a couple of U.S. economic reports that favored the weak side, which also somewhat limited selling pressure in the gold and silver markets.
German elections on Sunday saw Chancellor Angela Merkel win a third term, which was slightly bearish for gold as it suggested stability in the European Union's strongest economy. Also, the data provider Markit on Monday said its monthly gauge of business activity in the European Union rose in September to 52.1, the highest level in over two years. A reading above 50.0 suggests growth.
In China overnight, the HSBC manufacturing PMI rose to a six-month high of 51.2 in September, compared to a reading of 50.1 in August. This report continued a string of generally upbeat economic news coming out of the world's second-largest economy.
On the economic front at Wall Street today, the preliminary reading of Markit's flash manufacturing purchasing managers index slipped to 52.8 in September from 53.1 in August and declined for the second month in a row.
At the MCX, gold prices for October delivery closed lower by Rs 38 (0.13%) at Rs 29,874 per ten grams. Prices rose to a high of Rs 29,918 per 10 grams and fell to a low of Rs 29,540 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed higher by Rs 87 (0.18%) at Rs 49,393/Kg. Prices opened at Rs 48,728/Kg and rose to a high of Rs 49,457/Kg during the day's trading.
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