Precious metals end higher

Drop in dollar imparts shine on them
Precious metal prices shot up on Thursday, 11 June, 2009. They gave up earlier losses as the dollar lost sheen and dropped increasing their appeal as a hedge against inflation.
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 Thursday, Comex Gold for June delivery ended at $962, higher by $7.3 (0.8%) an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 1.8%. Year to date, gold prices are higher by 10.8%.
Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. Before this, gold had suffered losses in prior two months. For the month of April and March, 2009, gold had lost 3.7% and 2.1% respectively. But the metal gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (8%) since then.
On Thursday, Comex silver futures for July delivery rose 26 cents (1.7%) at $15.49 an ounce. Last week, silver ended lower by 1.4%. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. Year to date, silver has climbed 37.7% this year. For 2008, silver had lost 24%.
In the currency market on Thursday, the dollar reversed its earlier gains. The dollar index, which weighs the strength of dollar against the basket of six other currencies, went down 1.2%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for August delivery closed higher by Rs 70 (0.5%) at Rs 14,665 per 10 grams. Prices rose to a high of Rs 14,694 per 10 grams and fell to a low of Rs 14,525 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 373 (1.6%) higher at Rs 23,948/Kg. Prices opened at Rs 23,650/kg and rose to a high of Rs 24,018/Kg during the day's trading.