Upward finish for bullions

as investors grappled with a slew of mixed economic data from China and watched developments surrounding the U.S. debt ceiling and the euro zone.

Gold for February delivery rose $8.9 (0.5%) to settle at $1,714.4 an ounce on the Comex division of the New York Mercantile Exchange on Monday. Prices shed 0.4% last week.

On Monday, March silver rose 25 cents, or 0.7%, to settle at $33.38 an ounce.

The OECD issued a report overnight that said the U.S., China and U.K economies will continue to grow slowly in 2013, but that economies in the European Union, Japan and Canada will contract. The OECD said China's economic slowdown has ended. Over the weekend Chinese industrial output was reported up 10% on an annualized basis in November, which was above expectations. The China news was also a bullish underlying factor for the raw commodity markets, including the precious metals.

Official data released on Monday showed China's exports grew 2.9% in November, decelerating from a 11.6% growth recorded in October, and shrinking the monthly trade surplus to $19.6 billion. The value of imports was unchanged from a year-ago. Monday's trade data helped push the U.S. dollar slightly higher and applied a little selling pressure on some other currencies such as the euro, reflecting investors' weakened willingness to buy assets that are perceived to be riskier.

The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.02% on Monday.

The market place is awaiting this week's last Federal Reserve FOMC meeting of the year, on Tuesday and Wednesday. The "Operation Twist" program ends and the FOMC members must decide whether to extend a bond-buying program.

Also in the U.S., focus of the market place remains on the "fiscal cliff" tax increases and spending cuts that is fast approaching. While the market place presently perceives odds are higher than not that there will be a last-minute agreement among U.S. lawmakers to avoid the fiscal cliff, the overall situation continues to be a bearish drag on many markets, including the raw commodities and stock markets.

At the MCX, gold prices for February delivery closed higher by Rs 167 (0.53%) at Rs 31,493 per ten grams. Prices rose to a high of Rs 31,559 per 10 grams and fell to a low of Rs 31,331 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed higher by Rs 366 (0.6%) at Rs 62,948/Kg. Prices opened at Rs 62,658/kg and rose to a high of Rs 63,265/Kg during the day's trading.

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