Precious metals end mixed

Precious metals register good gains for the week

Bullion metals ended mixed on Friday, 28 November, 2008. Gold prices rose but silver prices dropped. But gold prices registered good gains for the week. Gold prices firmed up due to the weak dollar.

On Friday, Comex Gold for December delivery rose $7.7 (1%) to close at $816.2 an ounce on the New York Mercantile Exchange. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (21%) since then. For the week, gold prices ended higher by 3.1%. 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 have lost 2.2% till date. Futures have averaged $882 in 2008. The dollar index has gained 9% 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 Friday, Comex silver futures for December delivery fell 5 cents (0.5%) to $10.22 an ounce. For the week, silver gained 7.5%. For the month of November, silver prices gained 5%. Till date, silver has lost 28% 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.

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. Losses in equity markets also force traders to sell gold.