Precious metal prices ended lower on
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 April delivery ended at $1,113.1 an ounce, lower by $9 (0.8%) an ounce on the New York Mercantile Exchange. During intra day trading, it rose to a high of $1,131.5. Last week, gold gained 3.1%. For January 2010, gold lost 1.2%. Year to date, gold is higher by 1.7%.
On Monday, March Comex silver futures ended lower by 15 cents (1.2%) at $16.22 an ounce. Last week, silver ended higher by 4.1%. In January 2010, silver shed 3.9%.Year to date in FY 2010, silver has dropped by almost 1.9%.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies erased earlier losses and rose marginally against the euro.
The World Gold Council reported last week that demand for gold climbed 2.6% in the fourth quarter from the prior three-month period. Gold consumption increased to 819.7 metric tons with prices averaging 15% more on a quarter-to-quarter basis. Conversely, demand for gold fell 24% in the fourth quarter from a year ago, and was down 11% in 2009 versus the year earlier.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Last year, after hitting a low at $807.30 per ounce on
At the MCX, gold prices for April delivery closed lower by Rs 124 (0.73%) at Rs 16,692 per ten grams. Prices rose to a high of Rs 16,889 per 10 grams and fell to a low of Rs 16,652 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 253 (0.99%) lower at Rs 25,260/Kg. Prices opened at Rs 25,586/kg and fell to a low of Rs 25,150/Kg during the day's trading.