Yellow metal ends more than 4% for first quarter
Bullion metal prices ended higher on Tuesday, 31 March, 2009. The weak dollar was the main reason for precious metals ending higher.
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 Tuesday, Comex Gold for April delivery rose $7.1 (0.8%) to close at $922.6 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3.5%. Year to date, gold prices are higher by 12%.
For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.9%) since then.
On Tuesday, Comex silver futures for May delivery fell 4.8 cents (0.4%) to end at $12.985an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 19.6% this year. For 2008, silver had lost 24%.
In the currency market on Tuesday, the dollar moved lower against most major rivals. The U.S. Dollar Index, a six-currency gauge that includes the euro and yen, fell as much as 0.9%. The index has dropped 2.8% in March, 2009.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, 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. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for June delivery closed lower by Rs 57 (0.4%) at Rs 15,064 per 10 grams. Prices rose to a high of Rs 15,150 per 10 grams and fell to a low of Rs 14,935 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 170 (0.8%) lower at Rs 21,855/Kg. Prices opened at Rs 22,110/kg and fell to a low of Rs 21,244/Kg during the day's trading.
Bullion metal prices ended higher on Tuesday, 31 March, 2009. The weak dollar was the main reason for precious metals ending higher.
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 Tuesday, Comex Gold for April delivery rose $7.1 (0.8%) to close at $922.6 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3.5%. Year to date, gold prices are higher by 12%.
For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.9%) since then.
On Tuesday, Comex silver futures for May delivery fell 4.8 cents (0.4%) to end at $12.985an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 19.6% this year. For 2008, silver had lost 24%.
In the currency market on Tuesday, the dollar moved lower against most major rivals. The U.S. Dollar Index, a six-currency gauge that includes the euro and yen, fell as much as 0.9%. The index has dropped 2.8% in March, 2009.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, 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. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for June delivery closed lower by Rs 57 (0.4%) at Rs 15,064 per 10 grams. Prices rose to a high of Rs 15,150 per 10 grams and fell to a low of Rs 14,935 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 170 (0.8%) lower at Rs 21,855/Kg. Prices opened at Rs 22,110/kg and fell to a low of Rs 21,244/Kg during the day's trading.
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