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Thursday, August 20, 2009

Gold manages to end higher

Precious metals once again end mixed

Yellow metal prices rose on Wednesday, 19 August, 2009. Prices rose following a sharp rise in crude oil price today and also the slipping dollar. But silver prices fell.

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 Wednesday, gold for December delivery ended at $944.8, higher by $5.6 (0.6%) an ounce on the New York Mercantile Exchange. During intra day trading, gold rose to a high of $946.8 and fell to a low of $933.3. Last week, gold ended lower by almost 1.1%. After four consecutive weekly gains, this was yellow metal's first weekly drop. Year to date, gold prices are higher by 6.4%.

Gold ended July, 2009 higher by 2.8%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had 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 (9%) since then.

On Wednesday, Comex silver futures for September delivery fell 8 cents (0.6%) to $13.88 an ounce. Last week, silver ended higher by 0.23%.

Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 25% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the dollar index which weighs the value of dollar against a basket of six other currencies, fell by 0.4%.

In the crude market on Wednesday, light sweet crude for September delivery surged $3.23, or 4.7%, to end at $72.42 a barrel on the New York Mercantile Exchange.

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

At the MCX, gold prices for October delivery closed higher by Rs 67 (0.45%) at Rs 14,937 per 10 grams. Prices rose to a high of Rs 15,010 per 10 grams and fell to a low of Rs 14,843 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 40 (0.17%) lower at Rs 22,898/Kg. Prices opened at Rs 23,000/kg and fell to a low of Rs 22,511/Kg during the day's trading.

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