Yellow metal trades in red for entire day but silver gains
Precious metals (gold) ended lower on Monday, 27 April, 2009. They traded in the red for the entire session. Prices fell as worries about the current swine flu swept across the world today. But silver rose today.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Monday, Comex Gold for June delivery lost $5.9 (0.8%) to close at $908.2 an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 5.3%. Year to date, gold prices are higher by 2.5%.
For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (15%) since then.
On Monday, Comex silver futures for May delivery gained 3.5 cents (0.3%) at $12.955 an ounce. Year to date, silver has climbed 13.5% this year. For 2008, silver had lost 24%.
The deadly swine-flu outbreak, originated in Mexico, has fueled fears of a repeat of the SARS epidemic that had ravaged Asia. In Mexico, more than 1,641 people have contracted the swine flu and 103 people have died.
The IMF forecast earlier during the month a 1.3% decline in the world economy, compared with a 0.5% expansion estimated in January, and said growth will be slower next year than previously expected. As per the report, the UK will see its economy shrink by 4.1%, Japan by 6.2%, and the U.S. economy is expected to decline by 2.8%
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
