Precious metals were supported by a lower U.S. dollar index on Tuesday
Bullion metal prices ended moderately higher on Tuesday, 16 July 2013 at Comex. Gold prices ended the U.S. day session modestly higher in quieter trading on Tuesday. The precious metals were supported by a lower U.S. dollar index on Tuesday. Reports overnight said demand for physical coming out of India and Asia is on the upswing, which is also supportive for the overall gold market.
Gold for August delivery ended higher by $6.9 (0.5%) at $1,290.4 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.
September silver ended higher by $0.10 (0.5%) at $19.94 an ounce on Tuesday.
The world market place is looking ahead to Wednesday morning's appearance by Federal Reserve Chairman Ben Bernanke before the U.S. House of Representatives, where he will report on U.S. monetary policy and the economy. Traders hope the Fed chief will offer fresh clues on when the Fed will start to back off on its monthly bond-buying program (quantitative easing). Many are still thinking the Fed will do such later this year and as soon as September. However, Bernanke in remarks last week hinted he wants QE to start to wind down later rather than sooner because he feels the U.S. economic recovery is still shaky.
There was a batch of U.S. economic data out Tuesday. The consumer price index for June came in a bit higher than expected, at up 0.5%, while industrial production and capacity utilization did not stray too far from expectations. This data had little impact on the market place or precious metals.
More From This Section
The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.4% on Tuesday.
Among economic data expected at Wall Street today, June consumer prices rose 0.5%, which was above the 0.3% uptick that had been expected by the consensus. This followed the prior month's increase of 0.1%. The jump in prices was mostly a result of a 6.3% increase in the gasoline index. In addition, core prices rose 0.2%, in line with the Briefing.com consensus.
Also, industrial production increased 0.3% in June, which was in-line with the consensus estimate. That followed on the heels of an unchanged reading for May and was driven by a 0.3% increase in manufacturing production and a 0.8% jump in the output at mines. The output of utilities decreased 0.1%. Lastly, the May net long-term TIC flows report indicated a $27.2 billion outflow of foreign capital from U.S. denominated assets. This followed the prior month's $37.3 billion outflow.
At the MCX, gold prices for August delivery closed higher by Rs 31 (0.11%) at Rs 26,469 per ten grams. Prices rose to a high of Rs 26,620 per 10 grams and fell to a low of Rs 26,340 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed higher by Rs 70 (0.2%) at Rs 41,020/Kg. Prices opened at Rs 40,826/Kg and rose to a high of Rs 41,289/Kg during the day's trading.
Powered by Capital Market - Live News