Precious metals continue to witness mixed end

Gold ends lower but silver rises

Precious metal prices ended mixed with gold ending lower on Thursday, 29 April 2010 at Comex. Chances of Greece getting a sweet package deal from IMF and rest of the world helped the euro rebound today. Gold dropped from its four month high levels. Gold came under pressure as investors grew more confident an improved rescue agreement for debt-strapped Greece will soon be reached. Silver prices rose.

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 Thursday, gold for June delivery ended at $1,168.8 an ounce, lower by $3 (0.3%) an ounce on the New York Mercantile Exchange. During intra day trading, gold fell to a low of $1,162.2. Yesterday, gold had highest closing since December. Last week, gold ended higher by 1.5%. For the month of March, gold slid 0.4%. For the first quarter of this year, gold rose by 1.7%, its sixth quarterly rise. On a year to date basis, gold is higher by 6.4%.

On Thursday, May Comex silver futures ended higher by 44 cents (2.4%) at $18.55 an ounce. Last week, silver lost 2.9%. For the month of March, silver ended higher by 5%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 8.5%.

In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.4%. The euro rebounded against the dollar today. Concerns over spreading contagion to other European countries lessened somewhat on reports that officials were considering a multi-year rescue package for Greece that could total more than 100 billion euros ($133 billion), compared to prior plans for a one-year aid package of roughly 45 billion euros.

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 June delivery closed lower by Rs 129 (0.75%) at Rs 16,975 per ten grams. Prices rose to a high of Rs 17,077 per 10 grams and fell to a low of Rs 16,930 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 365 (1.3%) higher at Rs 27,972/Kg. Prices opened at Rs 27,573/kg and rose to a high of Rs 28,040/Kg during the day's trading.