Precious metals end little higher

Gold marks another new record for itself

Precious metal prices marked another record high on Wednesday, 18 November, 2009. Prices rose as the dollar continued to stay weak despite weak set of economic data at Wall Street.

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 $1,141.2, higher by $1.8 (0.1%) an ounce on the New York Mercantile Exchange. During intra day trading, it hit a high of $1153.4. This was an all time high prices marked by the yellow metal. Last week, gold ended higher by 2%. Year to date, gold prices are higher by almost 30%.

On Wednesday, December Comex silver futures ended higher by just 2 cent (0.002%) $18.41 an ounce.

In the currency market on Wednesday, the dollar continued to remain at its weak levels. The dollar index, which measures the strength of dollar against basket of six other currencies, fell by almost 0.5%.

The Commerce Department in US reported that housing starts in US fell a sharp 10.6% in October. New construction on housing units dropped to a seasonally adjusted annual rate of 529,000, the lowest level since April. The 10.6% drop was the biggest percentage decline for starts since January. Both single-family homes and multifamily units declined last month.

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 83 (0.48%) at Rs 17,105 per ten grams. Prices rose to a high of Rs 17,236 per 10 grams and fell to a low of Rs 17,001 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 163 (0.58%) higher at Rs 28,227/Kg. Prices opened at Rs 28,134/kg and rose to a high of Rs 28,688/Kg during the day's trading.