But prices witnesses first weekly drop after six weeks of rally
Gold prices rose for the second consecutive day today after dollar weakened paring earlier gains in the day. Silver prices also rose today. After initially strengthening, dollar lost steam today after September employment report showed in line gains for the month and big upward revisions of previous months.
Gold prices fell by 0.4% for the week. It was the first weekly drop after a six-week rally.
In recent times, the weakening of dollar have continued to affect the price of the metal. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices.
Earlier during the middle of this week, drop in crude oil and a continuation of the strengthening of the dollar against other currencies continued to hurt gold's appeal as an inflation hedge. Gold prices slipped on Tuesday and Wednesday, earlier this week.
Comex Gold for December delivery climbed $3.4 (0.5%) to close at $747.2 an ounce on the New York Mercantile Exchange today, Thursday, 5 October, 2007. It recovered from a low price of $732 an ounce. On Monday, 1 October, gold had climbed to an intraday high of $755.7. That was the highest intra day price seen since the last 28 years.
Comex Silver futures for December delivery rose 1 cents (0.01%) to $13.49 an ounce. The metal has climbed 4.3% this year.
The dollar rose as much as 0.7% after a report showed payrolls grew by 110,000 in September after an 89,000 increase in August. But then, the currency slipped. The currency has been witnessing a free fall since Federal Reserve cut interest rates by half percentage point.
Gold prices have jumped 15% during the third quarter and it is the most since 1999. The yellow metal has climbed 17% this year.
As per Nymex data on Wednesday, Gold warehouse inventories rose by 83,102 troy ounces to stand at 7.2 million troy ounces and silver supplies rose to 133.1 million troy ounces, up 294,757 troy ounces.
At the MCX, gold prices for December delivery closed at Rs 9522 per 10 grams. The closing price is Rs 47 (0.5%) higher as against previous closing price. Prices rose to a high of Rs 9538 per 10 grams during the day’s trading.
At the MCX, silver prices for December delivery closed Rs 27 (0.15%) higher at Rs 17,998/Kg. Prices opened at Rs 17,980/kg and went to a high of Rs 18,105/Kg during the day’s trading.