Ukraine tensions and U.S. economic data remain the key drivers in the market
Bullion metal prices ended more than a percent higher on Wednesday, 14 May 2014. U.S. gold futures rose Wednesday on safe-haven buying on worries about the continuing crisis in Ukraine. Silver prices settled at their highest level in a month on Wednesday, buoyed by a report that said physical demand for the metal rose to a record last year following news that London Silver Market Fixing will end its silver price fixing in mid-August.
Gold for June delivery rose $11.10, or 0.9%, to settle at $1,305.90 an ounce on Comex.
July silver rose 23 cents, or 1.2%, to $19.78 an ounce on the Comex division of the New York Mercantile Exchange.
Ukraine tensions and U.S. economic data remain the key drivers in the market at the moment, with gold ticking up or down within its range depending upon the latest news.
As per latest survey, total physical silver demand rose by 13% in 2013 to an all-time high, with the rise primarily driven by the 76% increase in retail investment in bars and coins and a sturdy recovery in jewelry and silverware fabrication.
Latest data at Wall Street showed that producer prices increased 0.6% in April, up from a 0.5% increase in March. The Briefing.com consensus expected producer prices to increase 0.2%. The economic consensus is once again having difficulties estimating producer inflation using the new methodologies. Final demand for services, which increased by its largest amount (0.7%) in March since January 2010, was anticipated to fall back in April. That did not happen. Services prices rose another 0.6% in April, which was one of the largest two-month gains in the history of the index. Final demand for goods increased 0.6% in April, up from being flat in March. Food prices, which jumped 1.1% in March, increased 2.7% in April. Energy costs, which were expected to be a primary factor for April inflation gains, increased a minute 0.1% in April after falling 1.2% in March. Excluding food and energy, core PPI increased 0.5% in April, down from a 0.6% increase in March. The consensus expected these prices to increase 0.2%.
Separately, the weekly MBA Mortgage Index rose 3.6% to follow last week's increase of 5.3%.
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