Precious metals end 0.4% higher

Weakness in U.S. equities and downbeat economic data help prices move up

Bullion metals finished nearly 0.4% higher on Wednesday, 23 April 2014. Gold prices ended the U.S. day session modestly higher on Wednesday, rebounding the lowest close in three weeks as tensions in Ukraine, weakness in U.S. equities and some downbeat economic data fueled some safe-haven demand for the metal.

Gold for June delivery climbed by $3.50, or 0.3%, to settle at $1,284.60 an ounce on the Comex division of the New York Mercantile Exchange.

May silver rose nearly 8 cents, or 0.4%, to $19.44 an ounce.

Reports Wednesday said demand for physical gold from Chinese consumers is picking up. Key Chinese economic data out Wednesday saw the HSBC April manufacturing PMI come in at 48.3 in March versus 48.0 in April. A PMI reading below 50.0 suggests contraction in the sector. Meantime, the European Union's flash services PMI for April was 52.5 versus 52.2 in March. The EU's manufacturing PMI was 53.3 in April versus 53.0 in March. The U.S. flash PMI number was also out Wednesday morning, showing a reading of 55.4 in April from March's final reading of 55. Markets did not significantly react to the batch of PMI data Wednesday.

Among other economic reports expected for the day on Wednesday, the weekly MBA Mortgage Index fell 3.3% to follow last week's increase of 4.3%. New home sales declined 14.5% in March from an upwardly revised 449,000 (from 440,000) in February to 384,000. The consensus expected home sales to increase to 455,000. March sales were the lowest since 373,000 new homes were sold in July 2013. Winter weather conditions, which were unduly blamed for softness across the economy, again showed little effect in the new home sector. The return to more normal temperatures, which should have boosted sales from pent up demand, resulted in the weakest demand since the middle of last year.

The dollar index, which weighs the strength of dollar against basket of six other currencies, ended lower by 0.1% on Wednesday.

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