Precious metals add glitter

Gold and silver move up following US manufacturing data Bullion metal prices ended higher on Monday, 02 April 2012 at Comex. Comex gold futures ended the U.S. day session modestly higher on Monday, on some short covering and bargain hunting following recent selling pressure. The key “outside markets” also turned bullish for the precious metals late Monday morning, as the U.S. dollar index was weaker and crude oil prices were solidly higher. Gold is also closer to more physical demand with wedding season in India ahead. Gold for June delivery ended higher by $7.8 or 0.5%, to end at $1,679.7 an ounce on the Comex division of the New York Mercantile Exchange on Monday. The metal had spent most part of the earlier week in the red. That brought first quarterly gains of gold to 6.7%. For March 2012, gold declined 2.3%. On Monday, silver prices for May delivery ended higher by $0.06 or 1.9% at $33.1. Silver gained 6.5% during February 2012. On the first quarter, silver jumped 16%, which follows three quarters of losses in 2011. For the month of March, silver declined 6%. In the currency market on Monday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies fell by almost 0.16%. The U.S. dollar pared gains against the euro on Monday after a report showed strength in the U.S. manufacturing sector, in contrast to one showing the sector weakened in Europe. 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. At Wall Street, the Institute for Supply Management's factory index rose to 53.4% last month from 52.4% in February. Market had expected the index would rise to 53.5%. Separately, the Commerce Department said construction spending fell 1.1% in February versus expectations of a 0.7% gain. Chinese data showed Manufacturing PMI rose to 53.1 (51.0 previous) while HSBC Manufacturing PMI fell to 48.3 (49.6 previous). European PMI data was also mixed as Eurozone Final Manufacturing PMI held at 47.7 and Britain's Manufacturing PMI surged to 52.1. At the MCX, gold prices for June delivery closed higher by Rs 39 (0.13%) at Rs 28,557 per ten grams. Prices rose to a high of Rs 28,635 per 10 grams and fell to a low of Rs 28,430 per 10 grams during the day's trading. At the MCX, silver prices for May delivery closed higher by Rs 805 (1.4%) at Rs 57,595/Kg. Prices opened at Rs 56,899/kg and rose to a high of Rs 57,737/Kg during the day's trading.