Precious metals add glaze

Gold ends higher for first time in four sessions Bullion metals at Comex finished higher on Tuesday, 08 January 2013. Comex gold futures prices made a steady climb throughout the session on Tuesday after three sessions of decline. Signs of demand from Asia perked up prices. Gold for February delivery rose $15.9 (1%) to settle at $1,662.1 an ounce on the Comex division of the New York Mercantile Exchange on Monday. Gold futures had tallied a loss of $42.50 an ounce, or 2.5%, over last three trading sessions. Gold ended 2012 with an overall yearly gain of around 7%, which marks the 12th consecutive year the yellow metal has posted yearly gains. On Tuesday, March silver rose $0.38, or 1.3% to settle at $30.47 an ounce. Silver finished 8.3% higher for the year 2012. In overnight news there was a mixed bag of economic data released by the European Union Tuesday. Most of it was downbeat, highlighted by the Euro zone seeing record high unemployment in November, at 11.8%. Traders are awaiting Thursday's monthly European Central Bank meeting. Asian traders are awaiting a fresh batch of Chinese economic data due out later this week and during the upcoming weekend. U.S. economic released Tuesday moved the precious metals markets very little. Latest assessment showed that China's annual economic growth may have quickened to 7.8% in the fourth quarter snapping seven straight quarters of weaker expansion, but the recovery is likely to be tepid and the economy may need continued policy support. China's export growth probably rebounded from three-month lows in December, although the recovery is likely to remain shallow due to weak demand in the United States and Europe, the country's two biggest customers. The data is due on Thursday. Reports overnight said demand for gold from China has increased markedly as the new year is under way. Chinese traders and investors are taking advantage of the recent dip to do some bargain hunting. Deutsche Bank joined other institutions that have cut their outlooks on gold prices, revising lower its 2013 and 2014 forecasts on Tuesday. Deutsche Bank reduced its average gold forecast for this year by 12.1% to $1,856 an ounce, as well as by 5% to $1,900 an ounce for 2014. Deutsche Bank also cut its price outlook for silver, by 16.8% to $37 an ounce for 2013 and by 5% to $38 for 2014. In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 0.7% on Tuesday. The index last Friday hit a four-week high, in the wake of the greenback-bullish FOMC minutes issued last week. The shine of last week's temporary U.S. fiscal cliff agreement by U.S. lawmakers has quickly faded. The market place is now looking forward with trepidation to the upcoming negotiations between the U.S. Congress and the Obama administration on budget and spending matters. Such is likely to limit trader and investor participation in many markets in the coming weeks. At the MCX, gold prices for February delivery closed higher by Rs 111 (0.36%) at Rs 30,974 per ten grams. Prices rose to a high of Rs 30,995 per 10 grams and fell to a low of Rs 30,865 per 10 grams during the day's trading. At the MCX, silver prices for March delivery closed higher by Rs 487 (0.83%) at Rs 58,470/Kg. Prices opened at Rs 58,050/kg and rose to high of Rs 58,650/Kg during the day's trading.