Precious metals shine

Prices witness weekly losses though

Precious metal prices rose on Friday, 18 March 2011 at Comex. Prices went up as tensions in Middle East, especially in Libya continued. Investors mulled over the fact whether Libyan officials will stick to their comments. Prices also rose as dollar index fell.



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. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa.

Gold for April delivery rose $11.9, or 0.9%, to end at $1,416.1 an ounce on the Comex division of the New York Mercantile Exchange. For the week, gold lost 0.4%.

Gold ended the month of February higher by 5.6% following a 6.1% drop in January 2011. For the year of 2010, gold ended higher by 30%, its tenth consecutive yearly gain.

Silver prices for May delivery rose $0.80 (2.3%) to end at $35.06. For the week, silver lost 2.5%. Prices gained more than 20% in February 2011 after shedding 9% this year in January. In FY 2010, silver ended higher by 83.7%.

In the currency market on Friday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, weakened. The dollar index slipped by 0.5%.

The latest gains for bullion metals came as the U.N.'s Security Council adopted a resolution to impose a ban on all flights in Libya's airspace and authorize “all necessary measures” to protect civilians under threat of attack in the country, including in the rebel-controlled city of Benghazi. News that Libya's Foreign Minister announced intentions for an immediate ceasefire following the UN's decision to implement a no-fly zone over the country was also met with a positive response