Precious metals turn dull

Bullion metal prices ended lower on Tuesday, 04, June 2013. Prices fell following a strong dollar as investors looked for signs as to what the Federal Reserve will decide to do with its bond-purchase program.

Gold for August delivery ended lower by $14.7 (1%) at $1,397.2 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

July silver ended lower by $0.30 cents (1.7%) at $22.42 an ounce on Tuesday.

Traders and investors await fresh fundamental inputs later this week. Major economic news is out later this week when the European Central Bank holds its monthly meeting on Thursday, followed by Friday's U.S. employment report.

The Organization for Economic Cooperation and Development reported Tuesday that inflation in the developed countries of the world fell to a 3.5-year low in April. The OECD said the worldwide consumer price index rose by 1.3% on an annualized basis in April, compared to a 1.6% annual rise in March.

It was also reported Tuesday that producer prices in the European Union fell by 0.6% in April, which is the sharpest drop in nearly four years.

In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2%.

Regarding economic data expected at Wall Street, today's economic data was limited to the April trade deficit, which widened to $40.3 billion from $37.1 billion. The consensus expected the deficit to come in at $41.0 billion.

At the MCX, gold prices for June delivery closed lower by Rs 248 (0.9%) at Rs 27,092 per ten grams. Prices rose to a high of Rs 27,396 per 10 grams and fell to a low of Rs 26,960 per 10 grams during the day's trading.

At the MCX, silver prices for July delivery closed lower by Rs 651 (1.5%) at Rs 43,763/Kg. Prices opened at Rs 44,206/kg and fell to a low of Rs 43,500/Kg during the day's trading.

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