Yellow metal prices ended higher on Thursday, 26 July 2012 at Comex. Prices rose as the European Central Bank signaled its intention to preserve the euro. Earlier this morning, President Mario Draghi made supportive comments, which resulted in a spike in the euro, commodities and equity markets around the world. Draghi's comments came as the market is also anticipating further stimulus in the U.S. and China, which are supportive for gold. But silver ended marginally lower. Gold for August delivery ended higher by $7 or 0.4%, to end at $1,615.1 an ounce on the Comex division of the New York Mercantile Exchange on Thursday. That was gold's best finish in almost two and half weeks. Last week, gold lost 0.6%. On Thursday, silver prices for September delivery ended lower by 2 cents or 0.1% at $27.45. During the week, there were reports about the potential for more Federal Reserve easing or liquidity measures. This comes as Federal Open Market Committee members prepare to a two-day policy meeting next week. In the currency market on Thursday, the U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies fell by 0.75%. 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 bullions have registered increase in prices despite strong dollar in recent times and vice versa. Among economic data expected for the day, the latest weekly initial jobless claims count totaled 353,000, which is better than the 381,000 that had been expected, on average. The latest tally is also down from the upwardly revised prior week count of 388,000. As for continuing claims, they fell to about 3.287 million from 3.300 million. Separately, durable goods orders increased in June by 1.6%, which is more than the 0.3% increase that had been expected. The stronger-than-expected increase comes on the back of an upwardly revised prior month durable goods orders data that showed a 1.3% advance. Excluding transportation related items, durable goods orders decreased in June by 1.1%, which is actually worse than the 0.1% decrease that had been broadly anticipated. However, prior month data revisions made for a more moderate rise of 0.7%. Pending home sales for June fell by 1.4%, which is worse than the 0.9% uptick that had been expected, on average. The fall also makes for a negative turn from the 5.9% increase that was experienced in the prior month. At the MCX, gold prices for October delivery closed lower by Rs 45 (0.15%) at Rs 30,173 per ten grams. Prices rose to a high of Rs 30,245 per 10 grams and fell to a low of Rs 30,105 per 10 grams during the day's trading. At the MCX, silver prices for September delivery closed lower by Rs 236 (0.44%) at Rs 53,217/Kg. Prices opened at Rs 53,370/kg and fell to a low of Rs 53,150/Kg during the day's trading. Powered by Capital Market - Live News |