Gold creates another record high

Higher investment demand pulls up precious metal prices

Precious metal prices ended higher for fourth straight day on Wednesday, 07 October, 2009. Prices rose despite a relatively steady dollar. Prices shone in the face of higher investment demand.

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 Wednesday, gold for December delivery ended at $1,043.3, higher by $4.7 (0.5%) an ounce on the New York Mercantile Exchange. During intra day trading, gold rose to a high of $1,049.7 crossing yesterday's all time high of $1045 reached. Last week, gold ended higher by 1.3%. Year to date, gold prices are higher by 18%.

Gold ended September, 2009 higher by 5.9%. For the third quarter it ended higher by 8.7%. 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 Wednesday, Comex silver futures for December delivery rose 20.5 cents (1.2%) to $17.5 an ounce.

Silver ended 11.8% higher for September, 2009. Year to date, silver has climbed 55% this year. For 2008, silver had lost 24%.

In the currency market on Wednesday, the dollar index, which measures the strength of dollar against a basket of other currencies, rose by almost 0.3%.

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

At the MCX, gold prices for December delivery closed higher by Rs 44 (0.27%) at Rs 15,812 per 10 grams. Prices rose to a high of Rs 15,898 per 10 grams and fell to a low of Rs 15,758 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 246 (0.91%) higher at Rs 27,101/Kg. Prices opened at Rs 26,885/kg and rose to a high of Rs 27,210/Kg during the day's trading.