Precious metals end mixed

Yellow metal manages to add little spark

Precious metal prices ended mixed with yellow metal ending slightly higher on Tuesday, 29 September, 2009. But dollar's movement kept the gains under control.

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 $994.4, higher by $0.30 (0.03%) an ounce on the New York Mercantile Exchange. Earlier during the day, it rose to a high of $997.2 and also fell to a low of $986.1 during intra day trading. Last week, gold ended lower by 1.9%. Year to date, gold prices are higher by 13%.

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 (4%) since then.

On Tuesday, Comex silver futures for December delivery fell 1.5 cents (0.1%) to $16.18 an ounce.

Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 45% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the dollar remained extremely volatile. The dollar gained ground especially against the Japanese currency after the nation's finance minister hinted at the possibility of intervention to arrest the yen's rise. The dollar index, which measures the strength of dollar against a basket of other currencies, rose by almost 0.2%.

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 5 (0.03%) at Rs 15,542 per 10 grams. Prices rose to a high of Rs 15,569 per 10 grams and fell to a low of Rs 15,456 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 131 (0.5%) lower at Rs 25,999/Kg. Prices opened at Rs 26,199/kg and fell to a low of Rs 25,850/Kg during the day's trading.