Search Now

Recommendations

Monday, August 10, 2009

Precious metals manage mixed end


Gold turns pale but silver shines though both manage weekly gains

Yellow metal prices fell on Friday, 07 August, 2009. Prices fell as the dollar strengthened following an upbeat job report from the Labor Department in US. But silver managed to add some shine to itself by going up.

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 $957.3, lower by $3.4 (0.4%) an ounce on the New York Mercantile Exchange. For the week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 7.8%.

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 (10.3%) since then.

On Friday, Comex silver futures for September delivery rose 2.3 cents (0.2%) at $14.668 an ounce. For the week, silver ended higher by 5.2%.

Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 31.7% this year. For 2008, silver had lost 24%.

In the currency market on Friday, the dollar index, a six-currency gauge of the greenback's value, rose by almost 0.7%.

The Labor Department reported on Friday, 07 August, 2009 that the unemployment rate, in July, 2009 unexpectedly fell to 9.4% as nearly a half a million people dropped out of the labor market. U.S. nonfarm payrolls declined by 247,000 to 131.5 million in July, the 19th consecutive month of job losses. It was the fewest lost payroll jobs since last August, 2008.

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 higher by Rs 13 (0.08%) at Rs 14,868 per 10 grams. Prices rose to a high of Rs 14,875 per 10 grams and fell to a low of Rs 14,853 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 18 (0.07%) lower at Rs 23,386/Kg. Prices opened at Rs 23,400/kg and fell to a low of Rs 23,359/Kg during the day's trading.