Bullions shed more than 1%

Better than expected factory orders data and strong dollar push prices lower Bullion metal prices ended lower on Tuesday, 02 July 2013 at Comex. Comex gold prices gave way to selling pressure brought on by the U.S. dollar index pushing to a four-week high. Prices had lost more ground after the U.S. Commerce Department reported that factory orders climbed more than expected in May. Gold for August delivery ended lower by $12.3 (1%) at $1,243.1 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. September silver ended lower by $0.27 (1.4%) at $19.31 an ounce on Tuesday. In early afternoon trading gold had moved up from its daily low as the market place is closely watching the latest developments coming from Egypt. Reports said the Egyptian army has called on the Egyptian president to step down, as protesters fill the streets of Cairo. Losses in gold Tuesday were limited by reports that consumer demand for physical gold, especially from Asia, is on the upswing this week. There are also reports that with the start of the new quarter on Monday, institutional investment demand for gold has picked up. The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% on Tuesday. The OECD reported Tuesday that inflation in the industrialized countries rose slightly in May but remains well under control. The annual inflation rate in May was 1.5% versus 1.3% in April. A report from the European Union on Tuesday corroborated the OECD data, as Euro zone manufacturing goods prices fell for the third straight month in May, at down 0.3%. Among latest economic data expected at Wall Street, today's economic data was limited to manufacturing orders, which increased 2.1% in May, up from an upwardly revised 1.3% (from 1.0%) in April. The consensus expected factory orders to increase 2.0%. At the MCX, gold prices for August delivery closed lower by Rs 74 (0.3%) at Rs 25,907 per ten grams. Prices rose to a high of Rs 26,240 per 10 grams and fell to a low of Rs 25,821 per 10 grams during the day's trading. At the MCX, silver prices for September delivery closed lower by Rs 187 (0.46%) at Rs 40,492/Kg. Prices opened at Rs 40,730/kg and fell to a low of Rs 40,304/Kg during the day's trading.