Gold incurs weekly loss despite marginal gains
Precious metal, gold, ended little higher on Friday, 19 June, 2009. The relatively weak dollar pushed its price up. But despite the marginal gain, bullion metals incurred weekly loses. But silver fell for the day.
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 Friday, gold for August delivery ended at $936.2, higher by $1.6 (0.2%) an ounce on the New York Mercantile Exchange. For the week, gold ended lower by 0.5%. Year to date, gold prices are higher by 7.8%.
Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. Before this, gold had suffered losses in prior two months. For the month of April and March, 2009, gold had lost 3.7% and 2.1% respectively. But the metal gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (10%) since then.
On Friday, Comex silver futures for July delivery fell 4 cents (0.3%) at $14.20 an ounce. For the week, silver ended lower by 4.5%. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. Year to date, silver has climbed 29.2% this year. For 2008, silver had lost 24%.
In the currency market on Friday, the dollar lost ground as gaining global equity markets pointed to a rise in investors' risk appetite. The greenback has tended to lose ground as investors shift away from perceived safe-haven assets. The dollar index, which measures the strength of the dollar against a basket of six other currencies, fell by more than 0.4%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
