Bullion metal prices ended mixed once again on Wednesday, 27 March 2013. Gold prices ended the U.S. day session higher but silver dropped. Gold rose for the first time in four sessions. Fresh safe-haven demand was featured, as there are still worries about the Cyprus banking crisis causing a "run" on European Union banks. Cyprus banks are scheduled to reopen on Thursday. Gains in gold were limited due to strong dollar.
Gold for April delivery ended higher by $10.5 or 0.7% at $1,606.2 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday.
May silver ended lower by 7 cents (0.2%) at $28.62 an ounce on Wednesday.
In an 11th-hour agreement early Monday morning, European Union finance ministers, the International Monetary Fund and the Cyprus government came to terms on a bailout for Cyprus' financial system that keeps the island nation within the European monetary system. The agreement ensures the depositors with 100,000 Euros or less in the Cyprus banks will keep all their funds. Those with over 100,000 Euros in Cyprus banks are going to take a big hit.
The downbeat open at Wall Street took place amid continued worries surrounding not only the European periphery but also its core. In Italy, Pier Luigi Bersani was unable to form a coalition government, making another round of elections increasingly more likely. Meanwhile, the Bank of England said British banks face a GBP25 billion shortfall. Also of note, the eurozone business and consumer survey was reported below expectations.
In addition to this morning's worries surrounding the eurozone, investors remained uncertain regarding the playbook the European Union may be using next time a troubled sovereign needs emergency assistance.
The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 0.4% on Wednesday.
At the MCX, gold prices for April delivery closed lower by Rs 105 (0.35%) at Rs 29,588 per ten grams. Prices rose to a high of Rs 29,680 per 10 grams and fell to a low of Rs 29,342 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed higher by Rs 53 (0.09%) at Rs 54,212/Kg. Prices opened at Rs 54,222/kg and rose to a high of Rs 54,340/Kg during the day's trading.
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