Bullion metals end higher

Prices register modest weekly gains

Precious metal prices ended higher on Friday, 05 March, 2010. Prices rose as the dollar fell against the euro increasing precious metal's appeal against an alternate investment. The dollar fell due to stronger than expected job data.

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 Friday, gold for April delivery ended at $1,135.2 an ounce, higher by $2.1 (0.2%) an ounce on the New York Mercantile Exchange. For the week, gold gained 1.4%. In FY 2010, gold touched a high of $1,154 in January.

On Friday, May Comex silver futures ended higher by 20 cents (1.1%) at $17.38 an ounce. For the week, silver ended higher by almost 8%.

In the currency market on Friday, the dollar gained ground initially but then slipped. The dollar index, which weighs the strength of the dollar against a basket of six other currencies initially went up by 0.4% but failed to sustain its gain and ended fractionally lower.

Among key economic data, the Labor Department in US reported on Friday that U.S. nonfarm payrolls declined for the 25th time in the past 26 months, falling by 36,000 in February to a seasonally adjusted 129.5 million. The nation's jobless rate was steady at 9.7%. Job losses in February were concentrated in construction, schools, transportation, insurance, and publishing sectors.

Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.