Dollar’s gains push the yellow metal marginally lower
Gold prices continued to drop today at New York. A 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. But silver prices climbed up today.
Comex Gold for December delivery fell $0.60 (0.08%) to close at $735.7 an ounce on the New York Mercantile Exchange today, 3 October, 2007. 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 20 cents (0.2%) to $13.47 an ounce. The metal has climbed 4.1% this year.
The dollar climbed today after reports on employment and service industries suggested the U.S. economy is weathering the housing slump. The Institute of Supply Management’s index showed modest expansion on the non-manufacturing side of the U.S. economy during September.
On the currency markets today, the dollar extended gains against the Japanese yen, the British pound and the euro. The Dollar Index, which tracks the performance of the greenback against a basket of currencies, rose 0.3%. Crude prices continued to trade below $80/barrel.
Till last Monday, 1 October, the weakening of dollar had continued to affect the price of the metal. Investor sentiments were boosted by the fact that gold and silver were alternate sources of good investment in the face of declining dollar and rising energy prices
Gold prices have jumped 15% during the third quarter and it is the most since 1999. The yellow metal has climbed 14.8% this year.
As per Nymex data on Monday, Gold warehouse inventories were unchanged at 7.1 million troy ounces and silver supplies rose to 132.8 million troy ounces, up 250,716 troy ounces.
At the MCX, gold prices for December delivery closed at Rs 9463 per 10 grams. The closing price is Rs 176 (1.8%) lower as against previous closing price. Prices fell to a low of Rs 9418 per 10 grams during the day’s trading.
At the MCX, silver prices for December delivery closed Rs 443 (2.3%) lower at Rs 18,025/Kg. Prices opened at Rs 18,421/kg and went to a low of Rs 17,911/Kg during the day’s trading.