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Wednesday, August 05, 2009

Precious metals rise for fourth straight day

Gold and silver prices gain as dollar remain at low levels

Precious metal prices rose for fourth straight time on Tuesday, 04 August, 2009. Prices rose as the dollar remained at ten month lows.

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 Tuesday, gold for August delivery ended at $967.5, higher by $10.9 (1.1%) an ounce on the New York Mercantile Exchange. It rose as high as $969.5 earlier. Last week, gold ended almost unchanged. Year to date, gold prices are higher by 8.9%.

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 (9.2%) since then.

On Tuesday, Comex silver futures for September delivery gained 44.3 cents (3.1%) at $14.695 an ounce. Last week, silver ended higher by 0.5%.

Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 30.3% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the dollar index, a six-currency gauge of the greenback's value, rose marginally.

As per latest report, net official gold sales slumped to 39 metric tons in the first half of 2009, down 73% from a year ago.

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 124 (0.83%) at Rs 14,893 per 10 grams. Prices rose to a high of Rs 14,944 per 10 grams and fell to a low of Rs 14,721 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 489 (2.14%) higher at Rs 23,247/Kg. Prices opened at Rs 22,726/kg and rose to a high of Rs 23,396/Kg during the day's trading.

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