Prices slid amid lack of fresh, bullish news
Bullion metal prices ended lower on Monday, 05 2013 at Comex. Gold and silver prices slid amid a lack of fresh, bullish news and on selling given the overall bearish postures of both markets and a steady dollar.
Gold for December delivery ended lower by $3.9 (0.3%) at $1,298.6 an ounce on the Comex division of the New York Mercantile Exchange on Monday.
September silver ended lower by $0.08 (0.4%) at $19.64 an ounce on Monday.
In overnight news the HSBC China services purchasing managers index reading was steady in July versus June, at 51.3. A PMI above 50.0 suggests economic expansion. Later this week China trade and industrial production data will be released and will be closely scrutinized by the market place. China is the world's leading consumer of base metals and the number-two gold consumer, behind India.
The Markit company Euro zone composite purchasing managers index rose to 50.5 in July from 48.7 in June, it was reported Monday. That's the first reading above 50.0 since January of 2012. The better PMI reading adds to a string of slightly improving economic data coming out of the European Union.
Stimulus efforts by the Fed have been seen as supportive for gold prices recently, but the central bank has said it expects to slow the pace of its bond buying by the end of this year if the economy continues to improve in line with its forecasts.
The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.1% on Monday.
Among economic data expected at Wall Street today, the ISM Non-Manufacturing Index posted its best reading since February 2011. The index jumped to 56.0 from 52.2 as business activity and production levels spiked to 60.4 in July from 51.7 in June. Just like the manufacturing report, the jump in production came from a strong gain in new orders (57.7 from 50.8).
At the MCX, gold prices for August delivery closed lower by Rs 130 (0.5%) at Rs 27,970 per ten grams. Prices rose to a high of Rs 28,041 per 10 grams and fell to a low of Rs 27,798 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed lower by Rs 209 (0.5%) at Rs 41,760/Kg. Prices opened at Rs 42,061/Kg and fell to a low of Rs 41,454/Kg during the day's trading.
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