Gold ends little higher while silver ekes out marginal loss
Bullion metal prices ended mixed on Monday, 06 May 2013. Gold ended moderately higher while silver edged down slightly lower. Recent good demand for physical gold continues to underpin the market.
Gold for June delivery ended higher by $3.8 (0.3%) at $1,468 an ounce on the Comex division of the New York Mercantile Exchange on Monday.
July silver ended lower by $0.06 cents (0.3%) at $23.96 an ounce on Monday.
A report Monday said the largest gold ETF has now seen around a 20% loss in investor funds since the beginning of the year. In overnight news, London was closed for a public holiday, which made for quieter dealings in the foreign exchange market. The European Union overall purchasing managers' index declined in April, but by less than forecast by economists. However, the German economy, the largest in the EU, is showing weakness. The Markit composite PMI for the EU came in at 46.9 in April from 46.5 in March. A reading below 50.0 shows contraction in business activity.
Gold did receive a bit of supportive news from European Central Bank president Draghi, who on Monday said the ECB could continue to ease its monetary policy if the EU economies show continued weakness.
Israeli missile strikes inside Syrian territory over the weekend have attracted the attention of the market place. Any escalation in that situation would likely prompt keener risk aversion in the world market place, and possibly fresh safe-haven demand for gold.
In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.25% on Monday.
At the MCX, gold prices for June delivery closed higher by Rs 134 (0.5%) at Rs 27,096 per ten grams. Prices rose to a high of Rs 27,234 per 10 grams and fell to a low of Rs 27,005 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed lower by Rs 9 (0.01%) at Rs 45,168/Kg. Prices opened at Rs 45,213/kg and fell to a low of Rs 44,905/Kg during the day's trading.
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