Bullion metals add luster

Prices rise as investors return to bullions due to ongoing comparative lower prices

Precious metals ended higher on Wednesday, 05 October 2011 at Comex. Prices gained as recent low prices lured investors back to precious metals. A day earlier, both gold and silver sold off throughout the session to finish near session lows.

Gold for December delivery rose $25.6 or 1.6%, to end at $1,641.6 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday. For the month of September, gold shed 11%. It registered a rise of 8% for the third quarter ending September.



On Wednesday, silver prices for December delivery rose $0.51 (1.7%) to end at $30.35. For the month of September, silver shed 28%. It registered a drop of 14% for the third quarter ending September.

Among economic data expected for the day, an ADP Employment Change report showed that private payrolls increased by 91,000, which bested the consensus call for an increase of 45,000. The report offers an encouraging preview of the official nonfarm payrolls report which is due the coming Friday.

In another report, ISM said that its services index slipped to a reading of 53% in September from 53.3% in August. Reading above the 50% mark indicate expanding activity, however, and the index also beat a forecast of 52.7%.

At the MCX, gold prices for December delivery closed higher by Rs 1,003 (1.99%) at Rs 51,226 per ten grams. Prices rose to a high of Rs 26,550 per 10 grams and fell to a low of Rs 25,820 per 10 grams during the day's trading..

At the MCX, silver prices for December delivery closed higher by Rs 1,821 (3.5%) at Rs 51,226/Kg. Prices rose to a high of Rs 51,640/kg and fell to a low of Rs 48,477/Kg during the day's trading.