Healthy weekly gains for precious metals

Record run continues for the yellow metal

Precious metals continued to shine on Friday, 19 August 2011 at Comex. Prices rose as investors flocked to bullions as a safe haven for investment as global recession fears continued o linger across investors' minds. Macroeconomic data in recent times have pointed out to a slow recovery of the US and global economy and chances of US entering another recession.



Gold for December delivery rose $30.2 or 1.7%, to end at $1,852.2 an ounce on the Comex division of the New York Mercantile Exchange on Friday. During intra day trading, prices rose to a high of $1,881.4. It was all time new record for the yellow metal. For the week, the yellow metal gained 6.4%.

On Friday, silver prices for September delivery rose by $1.74 (4.3%) to end at $42.43. It was silver's highest settlement since early May. For the week, silver gained 8.5%.

US stocks witnessed another bout of selling pressure on Friday. After a back-and-forth start to the day, stocks again succumbed to selling pressure in a continuation of the four-week trend that has taken the S&P 500 down 16% during that time. On Friday, the S&P 500 lost another 1.5%. Financials were the worst performing sector.

In the currency market on Friday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, fell by almost 0.2%.

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.