Precious metals end their losing streak and rise on Friday

Prices witness modest weekly losses

Precious metals ended their four-day losing streak and closed modestly higher on Friday, 21 October 2011 at Comex. Traders retuned back to bullions on thoughts that recent selling in bullions was overdone. The weak dollar added further shine. Investors cautiously welcomed a statement from France and Germany promising to provide firm details of a debt-rescue plan for the euro zone in the next few days.




Gold for December delivery ended modestly higher by $23.2 or 1.4%, to end at $1,636.1 an ounce on the Comex division of the New York Mercantile Exchange on Friday. During intra day trading, prices fell to a low of $1,612.8 and rose to a high of $1,649.6. For the week, gold lost 2.8%, erasing all of its prior week's gains. For the month of September, gold shed 11%. It registered a rise of 8% for the third quarter ending September.

On Friday, silver prices for December delivery rose $0.91 or 3% to end at $31.19. For the week, silver shed 3%. For the month of September, silver shed 28%. It registered a drop of 14% for the third quarter ending September.

Metals tracked equity markets' gains across the globe on Friday, as U.S. stocks moved broadly higher following key earnings, with McDonald's Corp. shares trading at an all-time high and amid optimism ahead of a euro-zone summit over the weekend.

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

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