Good gains for bullions

Prices end near daily highs on Monday

Bullion metal prices ended higher on Monday, 07 October 2013 at Comex. Prices ended the U.S. day session with good gains and near the daily high on Monday. Safe-haven demand amid the uncertainty surrounding the U.S. government's partial shutdown, a weaker U.S. dollar index and short covering were all bullish daily inputs for the yellow metal.

December gold ended higher by $15.2 (1.2%) at $1325.1 per ounce on Monday.

December silver ended higher by 63 cents or 2.9% of $22.39 per ounce.

The partial U.S. government closure is in its seventh day with still no end in sight. The market place is wondering if and when credit rating agencies will downgrade the U.S. government's credit rating. Such could accelerate trader and investor anxieties. However, as this situation drags on anxiety will continue to increase, and safe-haven demand for gold could also be ratcheted up.

China's Golden Week holiday season is winding down and the world's second-largest economy will be back at work in full force on Tuesday. Such could prompt some better demand for physical gold from China. Also, the Indian holiday season is approaching, which could also attract some better consumer demand for gold from India.

Most U.S. economic data is not being released due to the U.S. government closure. However, the Fed's FOMC minutes will be released on Wednesday and will be closely scrutinized by the market place. Other Fed officials are speaking this week. Traders and investors will be very interested in seeing what these officials say about the U.S. government shutdown's impact on the U.S. economy.

The Consumer Credit report for August was the lone economic release today. The report, which is compiled by the Federal Reserve, showed consumer credit increased $13.6 bln (consensus $11.8 bln) versus a prior increase of $10.4 bln. Like most other consumer credit reports, this one was also glossed over given its dated nature and history of seeing large revisions.

Powered by Capital Market - Live News