Bullion Gold SILVER Updates

Bullion metals ended lower at Comex on Thursday, 01 November 2012. Prices fell following economic data coming out of China and Wall Street. Better than expected economic data from both places made bullions lose their appeal as an alternate investment.


Gold for December delivery fell $3.6 (0.2%) to settle at $1,715.5 an ounce on the Comex division of the New York Mercantile Exchange on Thursday. Gold ended the month of October 3.1% lower.


On Thursday, December silver fell 7 cents, or 0.2%, to settle at $32.25 an ounce, with futures prices 6.5% lower for the month of October.


A number of economic data points came through today and most figures were largely in-line with expectations. The October Challenger Job Cuts report showed a 12.0% year-over-year increase. This follows the prior reading, which indicated a 70.8% decline.


According to today's ADP National Employment Report, employment in the nonfarm private business sector rose by 158K in October. This was above the 143K increase expected.


The latest weekly initial jobless claims count totaled 363,000, which was lower than the 375,000 that had been expected. The tally was below the revised prior week count of 372,000. As for continuing claims, they rose to 3.263 million from 3.254 million.


The consumer confidence reading for October came in at 72.2 while economists expected a reading of 72.0. This follows prior month's 70.3 print. The October ISM Index came in better-than-expected at 51.7 versus the 51.0 consensus, and up from September's reading of 51.5. Meanwhile, September construction spending rose by 0.6% month-over-month, against the expected increase of 0.8%.


Lastly, third quarter unit labor costs decreased by 0.1% which was lower than the 1.4% rise that had been widely anticipated. During the same period, productivity increased by 1.9%, according to the preliminary reading. An increase of 1.6% had been broadly forecast.


In Asia, two separate Chinese manufacturing surveys showed signs of economic recovery. China's manufacturing activity rose to a multi-month high in October, according to rival business surveys released on Thursday, bolstering the view that the world's second largest economy has turned the corner. Underscoring the improvement, gauges of new orders tracked by the government and a rival private sector survey both showed conditions were expansionary.


The official Purchasing Managers' Index, released by the National Bureau of Statistics along with the China Federation of Logistics and Purchasing, printed at 50.2 on a 100-point scale, compared to 49.8 in September, but slightly lower than expectations of 50.3. Additionally, the private-sector PMI released by HSBC, indicated activity firming to an eight-month high of 49.5, up from a final reading of 47.9 in September, and higher than an initial “flash” survey of 49.1 released last week.


The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% at the end of the day.


Demand for gold in the physical market is set to rise as the Hindu festival of Diwali in November approaches.


At the MCX, gold prices for December delivery closed lower by Rs 153 (0.5%) at Rs 30,952 per ten grams. Prices rose to a high of Rs 31,139 per 10 grams and fell to a low of Rs 30,936 per 10 grams during the day's trading.


At the MCX, silver prices for December delivery closed lower by Rs 186 (0.3%) at Rs 59,695/Kg. Prices opened at Rs 59,870/kg and fell to a low of Rs 59,660/Kg during the day's trading.

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