Precious metals end higher

Prices shine as dollar slumps

Precious metal prices rose higher on Wednesday, 21 October, 2009. Prices rose today as the dollar slumped to fresh fourteen month low.

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 $1,064.5, higher by $5.9 (0.6%) an ounce on the New York Mercantile Exchange. In the last week gold had registered record highs quite a few times. It reached an all time high of $1071 earlier last week. Last week, gold ended higher by 0.3%. Year to date, gold prices are higher by 20.6%.

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, December Comex silver futures ended higher by 27 cents (1.5%) at $17.825 an ounce.

Silver ended 11.8% higher for September, 2009. Year to date, silver has climbed 60.5% this year. For 2008, silver had lost 24%.

In the currency market on Wednesday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies fell by almost 0.8%.

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 36 (0.22%) at Rs 15,949 per 10 grams. Prices rose to a high of Rs 15,986 per 10 grams and fell to a low of Rs 15,855 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 229 (0.84%) higher at Rs 27,340/Kg. Prices opened at Rs 27,050/kg and rose to a high of Rs 27,390/Kg during the day's trading.