Precious metals end higher

Prices rise on stronger thane expected housing data

Precious metal prices ended higher on Friday, 17 July, 2009. A better than expected housing report from the Commerce Department together with the dropping dollar boosted gold prices.

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, gold for August delivery ended at $937.5, higher by $2.1 (0.2%) an ounce on the New York Mercantile Exchange. For the week, gold ended higher by 2.7%. Year to date, gold prices are higher by 5.7%.

For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (11%) since then.

On Friday, Comex silver futures for September delivery rose 16.8 cents (1.3%) at $13.403 an ounce.

Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 18.6% this year. For 2008, silver had lost 24%.

The Commerce Department in US reported on Friday that home-building starts rose 3.6% to an annual rate of 582,000, the highest since November, 2008. Building permits, a sign of future construction, jumped the most in a year.

In the currency market on Friday, the dollar fell against its counterparts. The dollar index fell by 1% for the week.

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

At the MCX, gold prices for August delivery closed higher by Rs 9 (0.061%) at Rs 14,763 per 10 grams. Prices rose to a high of Rs 14,770 per 10 grams and fell to a low of Rs 14,750 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 2 (0.009%) lower at Rs 22,051/Kg. Prices opened at Rs 22,054/kg and fell to a low of Rs 22,025/Kg during the day's trading.