Precious metals end mixed

Gold registers marginal while silver registers decent gains for August

Precious metal prices ended mixed on Monday, 31 August, 2009. Gold prices fell but silver rose. Prices ended mixed despite the somber dollar.

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 Monday, gold for December delivery ended at $953.5, lower by $5.3 (0.6%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 8.8%.

Gold ended August, 2009 higher by 0.2%. 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 (7.1%) since then.

On Monday, Comex silver futures for September delivery rose by 12.3 cents (0.8%) to $14.907 an ounce. Last week, silver ended higher by 4.3%.

Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 32.6% this year. For 2008, silver had lost 24%.

In the currency market on Monday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended lower by 0.2%.

Among economic reports expected on Monday, manufacturing activity improved for the third straight month in the Chicago region in August. The Chicago purchasing managers index rose to 50% in August from 43.4% in July, 2009.

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 4 (0.02%) at Rs 15,125 per 10 grams. Prices rose to a high of Rs 15,156 per 10 grams and fell to a low of Rs 15,037 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 200 (0.83%) higher at Rs 24,245/Kg. Prices opened at Rs 23,996/kg and rose to a high of Rs 24,725/Kg during the day's trading.