Bullion metals turn further pale

Gold sheds more than $40 in past three sessions

Bullion metals ended considerably lower for third straight day on Thursday, 13 November, 2008. Investors became concerned that global recession will definitely lower the demand for the precious metals. Since past three sessions, gold has shed almost $40.

On Thursday, Comex Gold for December delivery fell $13.3 (1.9%) to close at $705 an ounce on the New York Mercantile Exchange. Prices earlier fell to a low of $698.2. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (33%) since then. Last week, gold prices ended higher by 2.2%. For the month of October, gold ended lower by 18%. It was the biggest percentage loss for gold since February, 1983.

This year, gold prices have lost 16.7% till date. The dollar index has gained 13% this year. For the third quarter ended September, 2008, gold prices ended lower by 5.1%. It was the first quarterly loss for the yellow metal since the second quarter in FY 2007. Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. For first quarter prices gained 10.7%.

On Thursday, Comex silver futures for December delivery fell 68 cents (7.2%) to $8.8 an ounce. Last week, silver gained 2.3%. For the month of October, silver slipped by 20%. Till date, silver has lost 29.6% this year. Silver had ended month and quarter of September 2008 with a loss of 10%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.