Bright day for bullions

Prices rise for first time in three days

Bullion prices ended higher on Thursday, 23 January 2014 snapping a two-day skid with the prospect of India easing curbs on gold imports, a drop in U.S. equities and a weaker dollar lifting prices to their highest close in more than two months.

Gold for February delivery jumped $23.70, or 1.9%, to settle at $1,262.30 an ounce on the Comex division of the New York Mercantile Exchange.

March silver also climbed 17 cents, or 0.9%, to $20.01 an ounce.

Over in China, however, downbeat economic news dulled some prospects for demand from the world's other big gold buyer. China's manufacturing sector is registering an unexpected contraction in January, albeit a mild one, according to data out on Thursday.

The weak Chinese data contributed to a sharp drop in the U.S. equities market on Thursday, which in turn lured more investors toward gold.

There were also unconfirmed news that India's government is considering lifting at least part of its gold import duties on its citizens. Indian citizens are major gold consumers, but they have been squelched on their gold buying the past year due to the higher duties imposed by the Indian government.

Powered by Capital Market - Live News