Bullions slump

Bullion metal prices ended substantially lower on Thursday, 13 June 2013. Comex gold futures prices ended the U.S. day session with strong losses followed by a sharp sell-off in Japanese equities, followed by a round of stronger-than-expected U.S. economic data that underscored expectations the Federal Reserve will begin slowing the flow of stimulus to the economy in coming months.

Gold for August delivery ended lower by $14.2 (1%) at $1,377.8 an ounce on the Comex division of the New York Mercantile Exchange on Thursday.

July silver ended lower by $0.22 cents (1.2%) at $21.58 an ounce on Thursday.

In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.3% on Thursday.

Regarding economic data expected at Wall Street, The Labor Department said that the number of people applying for first-time jobless benefits fell to 334,000 in the week ended June 8, the lowest level since early May, pointing to a slower pace of layoffs. Market had forecast initial claims to rise to 350,000 from the previous week's 346,000.

Retail sales growth surpassed expectations, jumping 0.6% in May after increasing 0.1% in April. The consensus expected retail sales to increase 0.3%. Excluding autos, retail sales rose 0.3% in May, which was exactly in-line with consensus expectations. April sales were revised up from a drop of 0.2% in the advance release to no change.

At the MCX, gold prices for August delivery closed lower by Rs 186 (0.7%) at Rs 27,766 per ten grams. Prices rose to a high of Rs 28,186 per 10 grams and fell to a low of Rs 27,711 per 10 grams during the day's trading.

At the MCX, silver prices for July delivery closed lower by Rs 311 (0.71%) at Rs 43,235/Kg. Prices opened at Rs 43,717/kg and fell to a low of Rs 43,180/Kg during the day's trading.

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