Mixed end for bullions

Gold drops below $1,300 per ounce

Bullion metal prices ended mixed on Thursday, 10 October 2013 at Comex. Gold prices ended the U.S. day session lower with a proposed plan to temporarily raise the U.S. debt ceiling helping to fuel a rally in U.S. equities and draw investors away from the precious metal. Silver ended marginally higher.

December gold ended lower by $10.3 (0.8%) at $1296.9 per ounce on Thursday.

December silver ended higher by half a cent or 0.3% of $21.9 per ounce.

There was a general risk-on attitude in the marketplace on Thursday as there is some movement from House Republicans on extending the U.S. debt ceiling limit. President Obama was meeting with House GOP leaders. The overall U.S. budget/ debt ceiling debacle is far from being completely solved, however.

The G-20 finance ministers and central bankers meeting gets under way on Thursday in Washington. World finance and central bank officials are saying the U.S. debt/budget fiasco will begin to hurt world economies if U.S. lawmakers to reach agreement on the matter soon.

U.S. economic data released Thursday included the weekly jobless claims report, which showed a rise in claims. However, the data was skewed by recent reports not including all 50 U.S. states. the U.S. Labor Department said initial weekly jobless claims jumped to a six-month high of 374,000, worse than forecasts for 312,000. The jump was attributed to application-processing issues in California and government shutdown-related layoffs. Gold turned slightly positive after the claims data, but then dipped back into negative territory.

At the MCX, gold prices for December delivery closed lower by Rs 446 (1.5%) at Rs 28,857 per ten grams. Prices rose to a high of Rs 29,389 per 10 grams and fell to a low of Rs 28,802 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed lower by Rs 745 (1.5%) at Rs 48,264/Kg. Prices opened at Rs 49,189/Kg and fell to a low of Rs 48,165/Kg during the day's trading.

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