Bullion metals end mixed

Gold loses some shine but silver adds

Yellow metal prices ended lower on Thursday, 02 April, 2009. Prices fell as traders anticipated that steps being taken at current G 20 summit in London will help the world overcome the recession thereby decreasing the appeal of the precious metal.

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 Thursday, Comex Gold for April delivery fell $18.7 (2%) to close at $907.4 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3.5%. Year to date, gold prices are higher by 10.4%.

For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.9%) since then.

In its latest move, G20 leaders agreed to provide a total of $1 trillion in resources for the IMF and other international institutions in an effort to confront the global economic downturn. The total fiscal stimulus will amount to $5 trillion. The G20 also agreed on the formation of a financial stability board and to move to limit pay and bonuses in the banking sector.

On Thursday, Comex silver futures for May delivery gained 5 cents to end at $13.025 an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 21% this year. For 2008, silver had lost 24%.