Thursday, April 8, 2010

Gold rises for fifth straight day

Precious metal prices ended higher on Wednesday, 07 April 2010. Prices rose despite a strong dollar mainly on anticipation of higher demand in coming months. It was fifth straight rise for the yellow metal.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.

On Wednesday, gold for June delivery ended at $1,153 an ounce, higher by $17 (1.5%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.8%. In FY 2010, gold touched a high of $1,154 in January. For the month of March, gold slid 0.4%. For the first quarter of this year, gold rose by 1.7%, its sixth quarterly rise. On a year to date basis, gold is higher by 5.1%.

On Wednesday, May Comex silver futures ended higher by 27 cents (1.5%) at $18.2 an ounce. For the month of March, silver ended higher by 5%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 6.9%.

In the currency market on Wednesday, the euro came under pressure following renewed concerns about Greece and its ability to manage its finances. The dollar hit an eleven-month high against the euro earlier Wednesday. Greek bonds were hit a day earlier as investors reacted to uncertainty about how the joint European-International Monetary Fund aid package agreed to last month would function. The dollar index, which measures the strength of the dollar against basket of six other currencies rose by almost 0.5%. The dollar index gained about 0.7% in March and rallied 4% during the first quarter. The dollar index has gained 5.3% this year till date.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.

Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.At the MCX, gold prices for June delivery closed higher by Rs 232 (1.4%) at Rs 16,788 per ten grams. Prices rose to a high of Rs 16,798 per 10 grams and fell to a low of Rs 16,560 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 351 (1.3%) higher at Rs 27,629/Kg. Prices opened at Rs 27,340/kg and rose to a high of Rs 27,668/Kg during the day's trading.

No comments:

Post a Comment