Precious metals witness mixed end

Bullion metals cough up substantial weekly losses

Bullion metal prices ended mixed on Friday, 02 July 2010 at Comex with gold prices ending little higher but silver prices dropping. Prices seesawed for the entire day as and lacked much direction in thin trading ahead of the long holiday weekend.



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 $1,207.7 an ounce, higher by $1 (0.4%) an ounce on the New York Mercantile Exchange. For the week, gold ended lower by 4%.

Gold ended the month of June higher by 2.5%. For the second quarter, gold ended up by 12%, its seventh consecutive quarterly gain. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 10.5%.

On Friday, July Comex silver futures ended lower by 7 cents (0.4%) at $17.72 an ounce. For the week, silver ended lower by 7%. For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 0.8%.

Uncertainty and fears about the health of the U.S. economy came in focus again as traders pored over a mixed jobs report and a steeper-than-expected drop for factory sales.

The Labor Department in US reported on Friday, 02 July 2010 that total nonfarm payroll employment fell by 125,000 in June 2010 as the number of temporary census workers dropped by 225,000. This is the first decline in nonfarm payrolls this year. The decline in total payroll was roughly in line with expectations. There was only modest hiring of workers in the private sector in June. Private hiring edged up by a disappointing 83,000 in June from a revised 33,000 increase in May, originally reported as a 41,000 gain.

The unemployment report released by the government on Friday was better than expected but it still showed that the pace of the U.S. economic recovery has slowed in recent weeks. The nation's unemployment rate fell to a seasonally adjusted 9.5% in June from 9.7% in May.

Gold had ended FY 2009 higher by 24%. Silver futur