Precious metals end mixed

Gold rises but silver slips marginally

Yellow metal prices rose on Tuesday, 18 August, 2009. Prices rose following upbeat economic reports in the US. Prices also rose due to the slipping dollar. But silver registered marginal drop.

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 Tuesday, gold for December delivery ended at $939.2, higher by $3.4 (0.4%) an ounce on the New York Mercantile Exchange. During intra day trading, gold rose to a high of $941.6. Last week, gold ended lower by almost 1.1%. After four consecutive weekly gains, this was yellow metal's first weekly drop. Year to date, gold prices are higher by 5.8%.

Gold ended July, 2009 higher by 2.8%. Before this, 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 (9%) since then.

On Tuesday, Comex silver futures for September delivery fell marginally by 1 cent to $13.96 an ounce. Last week, silver ended higher by 0.23%.

Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 25.5% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the dollar index which weighs the value of dollar against a basket of six other currencies, fell by 0.3%. The dollar gained against the Japanese yen, but edged lower against the British pound and was little changed against the euro. The greenback slipped in European trading after a survey showed German investor confidence hit its highest level in more than three years and after British inflation failed to show an expected decline.

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

At the MCX, gold prices for October delivery closed lower by Rs 7 (0.04%) at Rs 14,870 per 10 grams. Prices rose to a high of Rs 14,919 per 10 grams and fell to a low of Rs 14,830 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 141 (0.61%) lower at Rs 22,938/Kg. Prices opened at Rs 23,119/kg and fell to a low of Rs 22,812/Kg during the day's trading.