Mixed finish for bullions

Gold ends higher but silver turns pale

Precious metals ended mixed on Tuesday, 29 November 2011 at Comex. Yellow metal prices ended higher due to weak dollar and higher crude oil prices. Silver prices dropped.

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 December delivery ended higher by $2.6 or 0.2%, to end at $1,713.4 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. Last week, the yellow metal lost 2.3%. For the month of October, gold gained 6.3%. It registered a rise of 8% for the third quarter ending September.

On Tuesday, silver prices for December delivery fell $0.31 or 1% to end at $31.85. Last week, silver lost 4.3%. 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 Tuesday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies dropped by almost 0.23%.

On the European Union debt crisis front, an Italian bond auction was well subscribed on Tuesday, but yields were still at or above the critical 7% level that is deemed in the danger zone for credit default.

On Tuesday, light, sweet crude for January delivery advanced $1.58, or 1.6%, to $99.79 a barrel on the New York Mercantile Exchange.

At Wall Street on Monday, stocks intensified their gains after the Conference Board said its consumer-confidence index in November rose by the most in more than eight years. Data showed that Consumer Confidence Index, spiked to 56.0 in November from 39.8 in the prior month.

At the MCX, gold prices for February delivery closed lower by Rs 45 (0.15%) at Rs 29,005 per ten grams. Prices rose to a high of Rs 29,125 per 10 grams and fell to a low of Rs 28,940 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed lower by Rs 485 (0.9%) at Rs 54,970/Kg. Prices opened at Rs 55,297/kg and fell to a low of Rs 54,551/Kg during the day's trading.