Bullion metals end mixed

Gold gains 7.5% in February, 2009

Bullion metal prices ended marginally lower on Friday, 27 February, 2009. Prices fell as traders anticipated that economy will recover in the coming months and this decreased the appeal of the precious metals.

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 Friday, Comex Gold for April delivery fell $0.1 (0.01%) to close at $942.5 an ounce on the New York Mercantile Exchange. For the week, gold ended lower by 6%. For the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are higher by 8.5%.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (8%) since then.

On Friday, Comex silver futures for March delivery rose 13.5 cents (1%) to end at $13.085 an ounce. Year to date, silver has climbed 18.5% this year. For 2008, silver had lost 24%.

The World Gold Council reported in February that demand for gold surpassed $100 billion last year for the first time ever, amid increased industrial and jewelry consumption and investors' purchase of the metal as a safe haven. Gold demand - including jewelry consumption, industrial demand and identifiable investments such as bars, coins and gold exchange-traded funds - hit $102 billion in 2008, up 29% from a year ago. In tonnage terms, gold demand rose 4% to 3,659 tons.

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.