Bullion metals glitter

Prices add more glaze as dollar drops

Precious metal prices ended higher and almost touched its 2010 highs on Wednesday, 03 March, 2010. Prices rose as the dollar slipped against the euro increasing precious metal's appeal against an alternate investment.

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 April delivery ended at $1,143.3 an ounce, higher by $5.9 (0.5%) an ounce on the New York Mercantile Exchange. Earlier during intra day trading, it touched a high of $1,145.8. In FY 2010, gold touched a high of $1,154 in January.

On Wednesday, May Comex silver futures ended higher by 27 cents at $17.33 an ounce.

In the currency market on Wednesday, the dollar weakened against the euro after Greece disclosed its pathway to reduce the budgetary deficit. The dollar index dropped by almost 0.6% during the day.

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.

Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.

At the MCX, gold prices for April delivery closed higher by Rs 8 (0.04%) at Rs 17,028 per ten grams. Prices rose to a high of Rs 17,095 per 10 grams and fell to a low of Rs 16,956 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 282 (1%) higher at Rs 26,973/Kg. Prices opened at Rs 26,670/kg and rose to a high of Rs 27,080/Kg during the day's trading.