Gold hits three-week low

Bullion metal prices ended moderately lower on Tuesday, 11 June 2013. Comex gold futures prices on Tuesday ended the U.S. day session modestly lower and up from the daily low after hitting a three-week low early on. Precious metals were caught in a downdraft after the Bank of Japan offered no additional stimulus at its policy meeting and investors around the world showed mounting concerns over rising short-term interest rates.

Gold for August delivery ended lower by $9 (0.6%) at $1,377 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

July silver ended higher by $0.28 cents (1.2%) at $21.65 an ounce on Tuesday.

World stock and bond markets were under strong selling pressure early Tuesday, with the yield on Greek government bonds pushing above 10% amid a big risk-off trading day in the market place. The U.S. stock market also started out with solid losses, but the selling pressure in U.S. equities was reduced somewhat at midday on Tuesday.

Reports of recent weak demand for physical gold coming from the world's major gold consumer India are also weighing on the yellow metal on Tuesday. The Indian government recently raised the import tax on gold in order to reduce its trade imbalance.

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 Tuesday.

Regarding economic data expected at Wall Street, today's economic news was limited to just one data point. Wholesale inventories increased 0.2% in April, and matched the consensus expectation. Inventory growth in March was revised down to 0.3% growth from 0.4%.

At the MCX, gold prices for August delivery closed lower by Rs 119 (0.42%) at Rs 27,892 per ten grams. Prices rose to a high of Rs 28,288 per 10 grams and fell to a low of Rs 27,678 per 10 grams during the day's trading.

At the MCX, silver prices for July delivery closed lower by Rs 551 (1.2%) at Rs 43,611/Kg. Prices opened at Rs 44,299/kg and fell to a low of Rs 43,307/Kg during the day's trading.

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