Gold hits new all time high

Gold crosses the $1100 mark for the first time ever

Precious metal prices ended substantially higher on Monday, 09 November, 2009. Prices rose as the greenback registered a sharp drop.

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 $1,101.4, higher by $5.7 (0.5%) an ounce on the New York Mercantile Exchange. Earlier, it rose to a high of $1,111.7. This was an all time high for the yellow metal. Year to date, gold prices are higher by 26%.

Gold ended October 2009 higher by 3.8%. 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 Monday, December Comex silver futures ended marginally higher by 11 cents (0.6%) at $17.48 an ounce.

Year to date, silver has climbed 62% this year. For 2008, silver had lost 24%.

Members of the G-20 and Treasury Secretary Geithner continue to hold the view that economic stimulus should not yet be withdrawn, which has led to considerable weakness in the U.S. dollar. In the currency market on Monday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies fell by more than 1%.

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 lower by Rs 28 (0.16%) at Rs 16,617 per 10 grams. Prices rose to a high of Rs 16,703 per 10 grams and fell to a low of Rs 16,582 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 13 (0.04%) higher at Rs 27,187/Kg. Prices opened at Rs 27,199/kg and rose to a high of Rs 27,464/Kg during the day's trading.