Bullions rise

Gold manages to hold on to gains while silver stages impressive performance

Precious metals ended modestly higher on Friday, 18 November 2011 at Comex. While gold managed to hold on to its gains, silver was much more impressive with its performance. Traders returned to bullions following latest drop in prices for precious metals.

Gold for December delivery ended higher by $4.9 or 0.3%, to end at $1,725.1 an ounce on the Comex division of the New York Mercantile Exchange on Friday. Gold was under pressure for most of the day as many large funds have been selling positions in gold and other commodities. For the week, the yellow metal lost 3.5%. For the month of October, gold gained 6.3%. It registered a rise of 8% for the third quarter ending September.



On Friday, silver prices for December delivery rose $0.92 or 2.9% to end at $32.42. For the week, silver lost 4.9%. For the month of October, silver gained 14%. It registered a drop of 14% for the third quarter ending September.

In the currency market on Friday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies traded lower by 0.3%. The dollar stayed weak against the euro on Friday, following reports European officials may discuss a plan that would see the European Central Bank loan money to the International Monetary Fund to help finance bailouts.

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.