Gold price increases but still stays below the $900 level
Bullion metals ended higher today, Tuesday, 24 June, 2008 as the dollar weakened. But even after rising, gold prices stayed still before $900. But silver prices fell today.
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. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.
Comex Gold for August delivery rose $4.4 (0.5%) to close at $891.6 ounce on the New York Mercantile Exchange. It rose to a high of $896.5 during intra day trading. But prices still stayed below the $900 mark which it had crossed last week. Last week, gold prices ended higher by $30.6 (3.5%). Last month, in May, it ended with a gain of higher by $22.5 (2.5%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.
This year, gold prices have gained 7% till date against a 6% drop for the dollar against the euro. Before May, for April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.
On Tuesday, Comex silver futures for July delivery fell 15.7 cents (0.9%) to $16.633 an ounce. Last week, silver has gained 5%. Silver has gained 11% in 2008 till date.
Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
At the currency markets on Tuesday, the dollar fell against the euro before the Fed's meeting on interest rates today and tomorrow.
Since last September, Fed has axed interest rates seven times and brought it down to 2%. On the other hand, the ECB has kept rates unchanged at 4% since June, 2007.
In the crude market on Tuesday, crude oil was little changed in New York after Royal Dutch Shell said that it resumed production at its Nigerian Bonga field that was attacked last week. Crude oil for August delivery rose 26 cents to settle at $137 a barrel.
Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for August delivery closed higher by Rs 36 (0.29%) at Rs 12,345 per 10 grams. Prices rose to a high of Rs 12,433 per 10 grams and fell to a low of Rs 12,286 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 176 (0.7%) lower at Rs 23,568/Kg. Prices opened at Rs 23,798/kg and fell to a low of Rs 23,495/Kg during the day's trading.
Bullion metals ended higher today, Tuesday, 24 June, 2008 as the dollar weakened. But even after rising, gold prices stayed still before $900. But silver prices fell today.
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. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.
Comex Gold for August delivery rose $4.4 (0.5%) to close at $891.6 ounce on the New York Mercantile Exchange. It rose to a high of $896.5 during intra day trading. But prices still stayed below the $900 mark which it had crossed last week. Last week, gold prices ended higher by $30.6 (3.5%). Last month, in May, it ended with a gain of higher by $22.5 (2.5%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.
This year, gold prices have gained 7% till date against a 6% drop for the dollar against the euro. Before May, for April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.
On Tuesday, Comex silver futures for July delivery fell 15.7 cents (0.9%) to $16.633 an ounce. Last week, silver has gained 5%. Silver has gained 11% in 2008 till date.
Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
At the currency markets on Tuesday, the dollar fell against the euro before the Fed's meeting on interest rates today and tomorrow.
Since last September, Fed has axed interest rates seven times and brought it down to 2%. On the other hand, the ECB has kept rates unchanged at 4% since June, 2007.
In the crude market on Tuesday, crude oil was little changed in New York after Royal Dutch Shell said that it resumed production at its Nigerian Bonga field that was attacked last week. Crude oil for August delivery rose 26 cents to settle at $137 a barrel.
Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for August delivery closed higher by Rs 36 (0.29%) at Rs 12,345 per 10 grams. Prices rose to a high of Rs 12,433 per 10 grams and fell to a low of Rs 12,286 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 176 (0.7%) lower at Rs 23,568/Kg. Prices opened at Rs 23,798/kg and fell to a low of Rs 23,495/Kg during the day's trading.
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