Prices rise despite strong dollar
Precious metals bounced back and ended considerably higher on
Monday, 24 May 2010 at Comex. Prices rose despite a strong dollar.
Prices rose today as traders thought that last week's selling of
commodities leading to lower prices was overdone.
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 June delivery ended at $1,194 an ounce,
higher by $17.9 (1.5%) an ounce on the New York Mercantile Exchange.
Gold for June delivery had settled above $1,200 in early December, only
to pull back to $1,172 area and dip as much as the $1,050 vicinity in
early February.
Last week, gold ended lower by 4.2%. For the month of April,
gold ended higher by 6%. For the first quarter of this year, gold rose
by 1.7%, its sixth quarterly rise. On a year to date basis, gold is
higher by 8.8%.
On Monday, July Comex silver futures ended higher by 35 cents
(2%) at $18 an ounce. Last week, silver ended lower by 8.1%. For the
month of April, silver ended higher by 4.1%. For the first quarter of
this year, silver rose by 3%. On a year to date basis, silver is higher
by 4.5%.
In the currency market on Monday, the dollar index, which
measures the strength of the dollar against a basket of six other
currencies rose by 0.9%.
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 15
January 2009, gold futures rallied almost 51% to hit an all-time high
at $1217.40 per ounce during early December of 2009 but fell from those
levels at the end. Silver futures had hit a low at $10.42 on 15 January
2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold,
silver also ended lower than its all time high level.
At the MCX, gold prices for June delivery closed higher by Rs
163 (0.9%) at Rs 18,165 per ten grams. Prices rose to a high of Rs
18,185 per 10 grams and fell to a low of Rs 17,968 per 10 grams during
the day's trading.
At the MCX, silver prices for July delivery closed Rs 287
(1%) higher at Rs 28,719/Kg. Prices opened at Rs 28,540/kg and rose to
a high of Rs 28,765/Kg during the day's trading.