Precious metals end mixed

Gold sheds glaze but silver adds

Precious metal prices ended mixed on Thursday, 10 September, 2009. Positive economic data reduced the appeal of yellow metals' appeal as an alternate source of investment. Silver managed to incur gains.

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 Thursday, gold for December delivery ended at $996.8, lower by $0.30 (0.03%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 4%. Year to date, gold prices are higher by 14%.

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 (2.5%) since then.

On Thursday, Comex silver futures for December delivery rose by 20 cents (1.2%) to $16.67 an ounce. Last week, silver ended higher by 9.9%.

Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 44.2% this year. For 2008, silver had lost 24%.

In the currency market today, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by 0.4%.

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 54 (0.34%) at Rs 15,703 per 10 grams. Prices rose to a high of Rs 15,730 per 10 grams and fell to a low of Rs 15,510 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 339 (1.3%) higher at Rs 26