Gold turns pale but silver shines
Precious metal prices ended mixed on Tuesday, 07 August 2012. Yellow metal prices fell for the first time in three days as bullions lost their charm partly as a safe investment haven following lack of market-moving fundamental news. Silver rose.
Gold for December delivery fell $3.4, or 0.2%, to end at $1,612.8 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.
On Tuesday, silver prices for September delivery rose 22 cents (0.8%) to end at $28.09.
In the currency market on Tuesday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, stayed flat.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa.
In overnight news, Asian stocks were firmer as traders and investors in that region look forward to fresh economic data from China due out later this week. The Australian central bank left its interest rates unchanged, which is what the market place was expecting.
European stocks were lower overnight following fresh, weak economic data coming out of Italy and Germany. Gross domestic product in Italy contracted in the second quarter, with a report on industrial production in that nation also showing a decline in June. Also, there was a downbeat German manufacturing report issued on Tuesday. The U.K. also saw a weak industrial production report on Tuesday.
At the MCX, gold prices for October delivery closed lower by Rs 161 (0.53%) at Rs 29,767 per ten grams. Prices rose to a high of Rs 29,998 per 10 grams and fell to a low of Rs 29,756 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed higher by Rs 24 (0.04%) at Rs 53,368/Kg. Prices opened at Rs 53,309/kg and rose to a high of Rs 53,497/Kg during the day's trading.
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