Mixed finish for bullions

Gold ends steady while silver ekes out little gains

Bullion metal prices ended in s steady mode on Wednesday, 11 September 2013 at Comex. Gold prices finished modestly lower on Wednesday, with the market on edge as efforts toward a diplomatic solution to avoid U.S. military intervention in Syria continued, and as investors looked for hints on what the U.S. Federal Reserve will say about monetary policy next week. Silver ended moderately higher.

Gold for December delivery ended lower by $0.20 (0.02%) at $1,363.8 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday.

December silver rose 16 cents, or 0.7%, to $23.18 an ounce on Comex on Wednesday.

The likelihood of a U.S. military attack on the Syrian regime continues to decrease this week, which has boosted investor risk appetite worldwide. That's bullish for world stock markets and most other markets but bearish for safe-haven assets such as gold, U.S. Treasuries and German bonds. President Obama said in a speech to U.S. citizens on Tuesday night that he has asked the Congress to postpone a vote on using military force against Syria. .

On the economic front, July wholesale inventories ticked up 0.1% while the consensus expected an increase of 0.2%. Today's report follows last month's unrevised decrease of 0.2%. Separately, the weekly MBA Mortgage Index fell 13.5% to its lowest level since November 2008. Today's decline was paced by a 20.2% decrease in the refinance index.

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.

Among economic data expected at Wall Street, July wholesale inventories ticked up 0.1% while the consensus expected an increase of 0.2%. Today's report follows last month's unrevised decrease of 0.2%. Separately, the weekly MBA Mortgage Index fell 13.5% to its lowest level since November 2008. Today's decline was paced by a 20.2% decrease in the refinance index.

At the MCX, gold prices for October delivery closed lower by Rs 71 (0.23%) at Rs 30,682 per ten grams. Prices rose to a high of Rs 31,085 per 10 grams and fell to a low of Rs 30,442 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed higher by Rs 204 (0.4%) at Rs 52,439/Kg. Prices opened at Rs 52,444/Kg and rose to a high of Rs 52,896/Kg during the day's trading.

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