Prices close at a fresh 6.5-month low
Bullion metal prices ended lower for fourth straight session on Tuesday, 19 February 2013. Prices ended the U.S. day session moderately lower and closed at a fresh 6.5-month low close on Tuesday. More selling pressure was featured in gold and silver following Friday's downside routs. A stable U.S. dollar index also limited buying interest in the gold and silver markets on Tuesday.
Gold for April delivery ended lower by $5.3 or 0.3%, to settle at $1,604.2 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.
March silver ended lower by 43 cents (1.4%) at $29.42 an ounce on Tuesday.
With China back in play after a week-long holiday the market place is looking to the world's second-largest economy for raw commodity demand clues. There were reports overnight that China's centrally planned economy is seeing some restrictions put on home financing due to higher property prices, which leads to ideas China could tap the brakes on its economic growth rate. That was also a bearish underlying factor for the precious metals markets Tuesday.
In European news overnight, the German ZEW economic expectations index hit a three-year high in its latest February report. That's another clue that the European Union economy has turned the corner toward better conditions ahead. Italian and Spanish bond yields crept lower Tuesday following a well-received Spanish debt offering. European traders are anxiously awaiting Italian elections beginning Sunday.
The market place is awaiting Wednesday afternoon's release of the latest minutes of the U.S. Federal Reserve's FOMC meeting. These minutes in the past few months have been market-movers.
The dollar index, which weighs the strength of the dollar against a basket of six other currencies fell 0.2% on Tuesday.
At Wall Street, the major averages began the holiday-shortened week with an upbeat open assisted in part by a strong German ZEW Economic Sentiment Survey. The key indices then held their levels despite a disappointing NAHB Housing Market Index, which slipped to 46 from its prior reading of 47.
At the MCX, gold prices for April delivery closed lower by Rs 124 (0.41%) at Rs 30,052 per ten grams. Prices rose to a high of Rs 30,220 per 10 grams and fell to a low of Rs 29,977 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed lower by Rs 1044 (1.85%) at Rs 55,171/Kg. Prices opened at Rs 56,330/kg and fell to a low of Rs 54,872/Kg during the day's trading.
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