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Wednesday, August 12, 2009

Yellow metal rises after long time

Precious metals end mixed as silver ends marginally lower

Yellow metal prices rose for the first time in five sessions on Tuesday, 11 August, 2009. Prices fell as the dollar weakened ahead of Federal Reserve's latest decision on interest rate in its tomorrow's Federal Open Market Committee meeting.

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 December delivery ended at $947.6, higher by $0.70 (0.1%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 6.6%.

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 (11.7%) since then.

On Tuesday, Comex silver futures for September delivery lost a marginal 1 cent to $14.345 an ounce. Last week, silver ended higher by 5.2%.

Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 29.6% 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, fell by almost 0.2%.

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 66 (0.45%) at Rs 14,807 per 10 grams. Prices rose to a high of Rs 14,819 per 10 grams and fell to a low of Rs 14,739 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 86 (0.37%) higher at Rs 23,117/Kg. Prices opened at Rs 23,076/kg and rose to a high of Rs 23,193/Kg during the day's trading.

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