Bullion metals end mixed

Gold prices go down but silver shines amid thin trading

Bullion metal prices ended mixed on Tuesday, 30 December, 2008 due to the dour economic data that hit the wires today. Gold dropped but silver rose. Prices also fell due to drop in crude price.

On Tuesday, Comex Gold for February delivery fell $5.3 (0.6%) to close at $870 an ounce on the New York Mercantile Exchange amid very thin trading. Last week, gold prices gained 4%. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (15.7%) since then.

This month, gold prices have rose 6.3% till date. For the month of November, gold prices ended higher by 14%. Prior to this, for the month of October, gold had ended lower by 18%. It was the biggest percentage loss for gold since February, 1983.

This year, gold prices are higher by 4%. Futures have averaged $865 in 2008. The dollar index has gained 8% 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 Tuesday, Comex silver futures for March delivery rose 17 cents (1.6%) to $10.98 an ounce. For the month of November, silver prices had gained 5%. Till date, silver has lost 27.3% this year.

For the month of October, silver had slipped by 20%. 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.

Among major economic reports for the day, the Conference Board reported today that worries increased about current labor-market and business conditions took consumer confidence to a record low in December. The December consumer confidence index fell to 38 from a downwardly revised 44.7 in November. Market was expecting a December reading of 45.8.

As per the report, consumers' view of current conditions worsened in December, with those saying business conditions are "bad" rising to 46% from 40.6%, and those saying jobs are "hard to get" rising to 42% from 37.1%.

In a separate report, the Case-Shiller price index reported today that home prices are back to their March 2004 levels, having dropped in 20 major U.S. cities by 2.2% in October and by a record 18% from the previous year.