Bullion metals turn pale

Optimism about overcoming recession pull precious metals lower

Bullion metal ended lower on Friday, 03 April, 2009. Prices fell as traders remained a bit optimist about the overall recovery of the global 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 Friday, Comex Gold for April delivery fell $11.8 (1.3%) to close at $895.6 an ounce on the New York Mercantile Exchange. For the week, gold ended lower by 3%. Year to date, gold prices are higher by 10%.

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.

On Friday, Comex silver futures for May delivery fell 24 cents (2.2%) to end at $12.975 an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 15% this year. For 2008, silver had lost 24%.

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