Bullion settles above $1700 an ounce

ECB President Draghi said the bank now expects the euro zone economy to contract by between 0.4% and 0.6% this year and to shrink by 0.3% to 0.9% in 2013. The ECB expects the euro zone economy to return to growth only in 2014, expanding between 0.2% and 2.2%. Comments from the ECB chief boosted expectations of an interest rate cut.

Gold for February delivery added $8, or 0.5%, to settle at $1,701.80 an ounce on the Comex division of the New York Mercantile Exchange, after tapping a high of $1,704.80.

Among other precious metals,March silver rose 15.7 cents, or 0.5%, to settle at $33.11 an ounce. Prices shed 2.5% last week.

At the MCX, gold prices for February delivery closed higher by Rs 26 (0.1%) at Rs 31,225 per ten grams. Prices rose to a high of Rs 31,284 per 10 grams and fell to a low of Rs 30,916 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed higher by Rs 116 (0.2%) at Rs 62,440/Kg. Prices opened at Rs 62,300/kg, surging as high as Rs 62,845 and fell to a low of Rs 61,601/Kg during the day's trading.

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