Mixed close for precious metals

Gold slips but silver adds a tad

Precious metal ended mixed on Monday, 11 April 2011 at Comex. Yellow metal ended lower while silver ended a tad higher. Prices stopped touching record highs after dollar strengthened following last week's weakness. Investors took profits following the record highs and some discussion in Washington about curbing the U.S. debt also took a toll on gold prices.


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 June delivery fell $6, or 0.4%, to end at $1,468.1 an ounce on the Comex division of the New York Mercantile Exchange. It touched a record high of $1,474.8 on last Friday. Last week, gold gained 3.2%.

For the year till date, gold is up by 3.3%. Gold ended the month of March higher by 2.1%. For the first quarter of FY 2011, gold ended higher by 1.3%. For the year of 2010, gold ended higher by 30%, its tenth consecutive yearly gain.

On Monday, silver prices for May delivery rose less than a penny to end at $40.61. Earlier it traded as high as $41.98. Last week, silver gained 7.6%. Prices have gained 31% till date this year. Prices gained 12% in March 2011. Silver eked out a gain of 22% for the first quarter of this year. In FY 2010, silver ended higher by 83.7%.

In the currency market on Monday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2%.

At the MCX, gold prices for June delivery closed lower by Rs 39 (0.2%) at Rs 21,373 per ten grams. Prices rose to a high of Rs 21,429 per 10 grams and fell to a low of Rs 21,337 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed lower by Rs 483 (0.8%) at Rs 60,000/Kg. Prices opened at Rs 60,650/kg and fell to a low of Rs 59,765/Kg during the day's trading.