Bullion metals continue to stay mixed

Gold shines but silver turns pale

Yellow metal prices ended higher on Friday, 11 June 2010 at Comex. Bullion metals witnessed buying interest as prices had dropped somewhat in recent times. Prices also rose as euro lost ground against the dollar. Prices rose despite a steady dollar. But silver prices dropped.



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. Recently, the embattled euro has played stronger role in moving prices rather than dollar fluctuation. Bullion metals have registered increase in prices despite strong dollar in recent times and vice versa.

On Friday, gold for August delivery ended at $1,230.2 an ounce, higher by $8 (0.7%) an ounce on the New York Mercantile Exchange. Earlier in the day, prices fell due to strong consumer confidence data. Earlier during the week, gold did trade to a new all time high at $1254.40 in the overnight session. For the week, gold ended higher by 1%. Prices had touched an all time high of $1,249.7 on 14 May 2010.

Gold also has set fresh record prices in euros, the British pound, the Indian rupee, the South African rand and the Chinese yuan, during the week.

Gold for June delivery had settled above $1,200 in early December 2009, only to pull back to $1,172 area and dip as much as the $1,050 vicinity in early February 2010. Gold ended May higher by 3%. For the month of April, gold ended higher by 6%. 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 12%.

On Friday, July Comex silver futures ended lower by 12 cents (0.7%) at $18.231 an ounce. For the week, silver ended higher by 5.4%. For May, silver shed 1.1%. For the month of April, silver ended higher by 4.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 6.5%.

As per the economic report scheduled for the day, The Reuters/University of Michigan in US reported on Friday, 11 June 2010 that U.S. consumer sentiment rose in early June, hitting the highest level since January 2008. According to the sentiment data, consumers' expectations rose to 70.7 in June from 68.8 in May, while their view of current conditions rose to 82.9 from 81.

In the currency market on Friday, the dollar stayed strong for almost the entire day. The dollar index gained by almost 0.3%. The euro fell as much as 0.7% against the dollar after rallying the previous three sessions. Gold has gained 12% this year as the euro plunged 16%.

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.