Prices shine as dollar stays under pressure
Bullion metal prices ended higher for first time in five days
on Thursday, 10 December, 2009. Economic data kept the dollar under
pressure today.
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 Thursday, gold for December delivery ended at $1,125.7 an
ounce, higher by $5.2 (0.5%) an ounce on the New York Mercantile
Exchange. Gold prices have dropped almost $100 (8%) in the past four
sessions. Last week, gold shed 0.5%.
Gold ended November, 2009 higher by 13%. Before that, for the
third quarter it ended higher by 8.7%. 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 28.5%.
On Thursday, December Comex silver futures ended higher by
0.15 cents (0.1%) at $17.173 an ounce. Last week, silver ended higher
by 1%.
Among economic data today, The Labor Department in US
reported on Thursday, 10 December, 2009 that the number of people
filing claims for state unemployment benefits rose by 17,000 to a
seasonally adjusted 474,000 in the week ending 5 December, 2009. Market
had expected initial claims to fall to about 450,000. The total number
of people claiming benefits of any kind topped 10 million. First-time
claims, which measure new layoffs, rose for the first time in six weeks
in the week after Thanksgiving.
Another report showed that the trade deficit in US for October
totaled $32.9 billion, which is less than the $36.8 billion deficit
that had been widely expected. It is also an improvement from the
upwardly revised $35.7 billion deficit that was registered in
September. Meanwhile, the November Treasury Budget was expected to show
a shortfall of $131.6 billion, but it was less steep at $120.3 billion.
In the currency market on Thursday, the dollar stayed
relatively steady against its counterparts. But the euro climbed up
more than 0.1% against the dollar.
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 11 (0.06%) at Rs 17,078 per ten grams. Prices rose to a high of Rs
17,163 per 10 grams and fell to a low of Rs 17,025 per 10 grams during
the day's trading.
At the MCX, silver prices for March delivery closed Rs 215
(0.78%) lower at Rs 27,174/Kg. Prices opened at Rs 27,359/kg and fell
to a low of Rs 27,057/Kg during the day's trading.