Bullions slip

Gold ends at lowest levels in three weeks

Bullion metal prices ended substantially lower on Tuesday, 10 September 2013 at Comex. Gold prices ended the U.S. day session sharply lower and hit a fresh three-week low on Tuesday, pressured by safe-haven trades that were put on recently being unwound due to ideas a U.S. military strike against the Syrian regime is now less likely. Sharply lower crude oil prices Tuesday also lent selling pressure to gold and other raw commodity markets.

Gold for December delivery ended lower by $22.7 (1.6%) at $1,364 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. It was gold's lowest close in three weeks.

December silver fell 70 cents, or 3%, to $23.02 an ounce on Comex on Tuesday.

On the economic front, it was reported Tuesday China's industrial output rose by 10.4% on an annual basis in August, which beat market expectations of a 9.9% gain. China's retail sales also beat forecasts and were up 13.4% in August, year on year. This adds to a string of generally upbeat economic data coming out of China and Asia. Such is an underlying bullish factor for the raw commodity sector.

Reports on Tuesday said gold imports to India fell by more than 90% during August, year on year, due to government-imposed import taxes.

Traders and investors are looking ahead to next week's meeting of the U.S. Federal Reserve's Open Market Committee (FOMC). A slight majority of the market place believes the U.S. central bank at next week's meeting will announce it will begin to scale back, or taper its monthly bond-buying program. For the past several weeks the market place has been fixated on what the U.S. central bank will announce at the conclusion of next week's FOMC meeting.

At the MCX, gold prices for October delivery closed lower by Rs 787 (2.5%) at Rs 30,753 per ten grams. Prices rose to a high of Rs 31,497 per 10 grams and fell to a low of Rs 30,502 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed lower by Rs 1,882 (3.5%) at Rs 52,235/Kg. Prices opened at Rs 53,955/Kg and fell to a low of Rs 51,759/Kg during the day's trading.

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