Precious metals witness mixed finish

Prices erase their early gains

Precious metals ended mixed on Tuesday, 07 June, 2011 at Comex. Prices rose earlier in the day but then lost steam as traders garnered for Ben Bernanke's comments regarding the outlook of US economy. Gold prices slipped at the end while silver pared its gains partly but managed to end in the black.



Gold for August delivery fell $3.2 or 0.2%, to end at $1,544 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. Earlier prices reached a high of $1,551.4. Last week, gold gained 0.3%. Gold ended the month of May lower by 1.2%.

For the year till date, gold is up by 7.9%. For the first quarter of FY 2011, gold ended higher by 1.3%. During 2010, gold ended higher by 30%, its tenth consecutive yearly gain.

On Tuesday, silver prices for July delivery rose $0.26 (0.7%) to end at $37.05. During intra day trading, it rose to a high of $37.52. Last week, silver lost 4.4%. Silver ended the month of May lower by 21%.

Silver prices have gained 17% until date this year. Silver eked out a gain of 22% for the first quarter of this year. In FY 2010, silver ended higher by 83.7%.

Silver was partly supported by fears that Peru's likely president would promote a bigger government role in the country's economy. The South American country is a top exporter of metals, including gold, silver, copper and other base metals.

In the currency market on Tuesday, economic data out of Europe supported the euro, which rallied against the U.S. dollar. A weaker greenback, which earlier fell to a one-month low against the euro, provided support for other metals, which closed higher.

At the MCX, gold prices for June delivery closed lower by Rs 77 (0.33%) at Rs 22,622 per ten grams. Prices rose to a high of Rs 22,722 per 10 grams and fell to a low of Rs 22,556 per 10 grams during the day's trading.

At the MCX, silver prices for July delivery closed higher by Rs 249 (0.45%) at Rs 55,572/Kg. Prices opened at Rs 55,290/kg and rose to a high of Rs 56,088/Kg during the day's trading.