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Tuesday, December 01, 2009

Bullion metals glitter again

Price metal prices register sharp rise in November 


Precious metal prices registered good increase on Monday, 30 November, 2009. With Monday's increase, bullion metals registered good rise for the month of November. The dollar remained relatively weak for the day thereby imparting more glitter to precious metals.

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, gold for December delivery ended at $1,181.1, higher by $6.9 (0.6%) an ounce on the New York Mercantile Exchange.

Gold ended November, 2009 higher by 13%. Gold just lost in three sessions in the entire month of November. For the third quarter it ended higher by 8.7%. 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 a year to date basis, gold price is higher by 33%.


On Monday, December Comex silver futures ended higher by 19.3 cents (1.1%) at $18.495 an ounce. For the month of November, 2009, silver rose 14%.

In the currency market on Monday, the dollar weakened as concerns eased over Dubai's debt problem, and as upbeat economic data in the Chicago region reduced investors' appetite for the greenback.

Worries over Dubai's debt crisis eased Monday after the central bank of the United Arab Emirates said during the weekend that it will make available a special liquidity facility for banks of the city state. Dubai World, the largest corporate entity in the Persian Gulf emirate, asked creditors last Wednesday for a six-month stay on repayment of $60 billion in debts.

In economic news, as per the Chicago purchasing managers index released Monday by the Institute for Supply Management of Chicago, more businesses in the Chicago region were expanding in November than at any time in the past 15 months.

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

At the MCX, gold prices for February delivery closed lower by Rs 326 (1.8%) at Rs 17,711 per ten grams.

Prices rose to a high of Rs 18,004 per 10 grams and fell to a low of Rs 17,205 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed Rs 575 (1.98%) lower at Rs 28,373/Kg. Prices opened at Rs 28,810/kg and fell to a low of Rs 27,800/Kg during the day's trading.
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