Bright day for bullions

Bullion metal prices ended higher on Wednesday, 29 May 2013. Prices rose for first time in three sessions following weak dollar. Gold futures settled higher on Wednesday as strength in the euro helped prices recoup most of what they lost in the past two trading sessions.

Gold for August delivery ended higher by $12.1 (0.9%) at $1,391.8 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday. It touched a high of $1392.9 and a low of $1381.4 during intra day trading.

July silver ended higher by $0.26 cents (1.2%) at $22.45 an ounce on Wednesday.

Following last week's news events from the U.S. Federal Reserve Chairman Bernanke's speech to Congress and the latest FOMC minutes' release traders and investors will examine this week's U.S. economic data with a keener sense of whether the economy continues to grow slowly, or is beginning to fade. Tuesday's data favored the hawkish Fed camp that wants to wind down quantitative easing of U.S. monetary policy.

J.P. Morgan analysts cut the forecast of silver price for the second quarter by 17% to $25 an ounce and lowered the full-year outlook on silver to $27.89 from $30.01. Bank of America Merrill Lynch cut its 2013 forecast on gold by 12% to $1,478 an ounce.

In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.2%.

Regarding economic data expected at Wall Street Wednesday, the weekly MBA Mortgage Index, decreased 8.8% to follow last week's decline of 9.8%.

At the MCX, gold prices for June delivery closed higher by Rs 227 (0.85%) at Rs 26,871 per ten grams. Prices rose to a high of Rs 26,915 per 10 grams and fell to a low of Rs 26,616 per 10 grams during the day's trading.

At the MCX, silver prices for July delivery closed higher by Rs 445 (1.02%) at Rs 43,707/Kg. Prices opened at Rs 43,381/kg and rose to a high of Rs 43,789/Kg during the day's trading.

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