Bullions shine again

Prices end at almost session highs following weak dollar

Bullion metal prices ended higher on Thursday, 15 March 2012 at Comex and ended almost at session high. Short covering and bargain hunting following recent strong selling pressure were featured. The key “outside markets” were bullish for the precious metals on Thursday, as the U.S. dollar index was lower.

Gold for April delivery ended higher by $16.6 or 1%, to end at $1,659.5 an ounce on the Comex division of the New York Mercantile Exchange on Thursday. Prices edged up 0.1% last week. Prices shed 1.7% on the month of February 2012.



On Thursday, silver prices for May delivery ended higher by $0.55 or 1.7% at $32.73. Last week, silver declined 1%. Silver gained 6.5% during February 2012.

In the currency market on Thursday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies fell by almost 0.45%.

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 bullions have registered increase in prices despite strong dollar in recent times and vice versa.

Among economic data expected for the day, The Labor Department reported first-time claims for jobless benefits fell by 14,000 to 351,000 last week, returning to a four-year low. The New York Federal Reserve's gauge of manufacturing in the region in March climbed to 20.2 from 19.5 the month before, reaching a 21-month high in the most recent reading. In a separate report, the Federal Reserve Bank of Philadelphia's business-condition index rose to 12.5 in March from 10.2 last month.

At the MCX, gold prices for April delivery closed higher by Rs 261 (0.95%) at Rs 27,704 per ten grams. Prices rose to a high of Rs 27,730 per 10 grams and fell to a low of Rs 27,312 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed higher by Rs 743 (1.3%) at Rs 57,979/Kg. Prices opened at Rs 57,000/kg and rose to a high of Rs 58,084/Kg during the day's trading.