Precious metals end lower

Gold and silver prices end lower on the last day of the week though gains on a weekly basis

Bullion metals ended lower on Friday, 28 March, 2008 as other commodities too declined across the board. Dollar rebounded on Friday and thus precious metals ended lower. A lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies and vice versa. Silver prices fell for the day.

Comex Gold for June delivery fell $17.20 (1.8%) to close at $936.8 ounce on the New York Mercantile Exchange. On Monday, 17 March, prices skyrocketed to a high of $1,034/ounce. For the week, gold prices gained 1.1%.

This year, gold prices have gained 14.1% till date. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices have succumbed and fell by 3%.

Comex Silver futures for May delivery fell 60 cents (3.2%) to $17.955 an ounce. Silver has gained 28% in 2008. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 1%. For the week, silver gained 6%.

In the energy market on Friday, oil fell for the first time in three sessions, touching $105.22 a barrel after supply concerns continued after a pipeline explosion in southern Iraq cut supplies to the country's main export terminal earlier in the week.

At the MCX, gold prices for April delivery closed lower by Rs 347 (2.8%) at Rs 11,987 per 10 grams. Prices rose to a high of Rs 12,340 per 10 grams and fell to a low of Rs 11,907 per 10 grams during the day’s trading.

At the MCX, silver prices for May delivery closed Rs 1,009 (4.2%) lower at Rs 22,939/Kg. Prices opened at Rs 23,841/kg and fell to a low of Rs 22,680/Kg during the day’s trading.