Precious metals stay steady

Gold slips marginally but silver climbs up

Precious metals ended on a steady note on Monday, 07 February 2011 at Comex. Gold turned marginally lower while silver went up. Gold traded higher earlier in the day. The dollar witnessed a flat finish for the day.



On Monday, gold for April delivery ended lower by $0.80 (0.1%) at $1,348.2 mark on the New York Mercantile Exchange. Last week, gold ended higher by 0.6%. For the year, gold has dropped by 5.3% till date.

For the year of 2010, gold ended higher by 30%, its tenth consecutive yearly gain.

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.

On Monday, March Comex silver futures ended higher by $0.28 (1.4%) at $29.35. Prices gained 2.9% last week. Prices have shed 9% this year in January. For the year till date, silver has shed 4.6%.

In FY 2010, silver ended higher by 83.7%.

In the currency market on Monday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, finished flat after it had staged gains in the previous three sessions. It had been on pace for another gain, but fell in afternoon trade.

Bullion metal prices are expected to continue with their joyride in the coming months with gold expected to reach between $1,600 and $1,700 an ounce and silver likely to attempt to test highs in the $50 area.

At the MCX, gold prices for April delivery closed lower by Rs 108 (0.53%) at Rs 20,162 per ten grams. Prices rose to a high of Rs 20,247 per 10 grams and fell to a low of Rs 20,151 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed Rs 81 (0.2%) higher at Rs 44,597/Kg. Prices opened at Rs 44,498/kg and rose to a high of Rs 44,745/Kg during the day's trading.