Bullion metals turn pale

Prices register significant weekly drop
Precious metal prices ended considerably lower on Friday, 22 January 2010. Prices fell as traders mulled over China's tightening of the current monetary policies. Sell-off of US stocks at Wall Street also pressured to declining commodity prices.
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 Friday, gold for February delivery ended at $1,089.7 an ounce, lower by $13.5 (1.2%) an ounce on the New York Mercantile Exchange. Earlier during the day, it fell to a low of $1,081.9. For the week, it ended lower by 2.4%. Year to date in FY 2010, gold has dropped by almost 0.3%.
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.
On Friday, March Comex silver futures ended lower by 40 cents (2.3%) at $16.93 an ounce. For the week, silver ended lower by 8.1%. Year to date in FY 2010, silver has risen by almost 2.8%.
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.
In the currency market on Friday, the dollar index, which weighs the strength of dollar against the basket of six other currencies stayed steady against most of its counterparts. The dollar strengthened on fears that China will curb bank lending. The China Banking Regulatory Commission said it hasn't "specifically" told banks to suspend lending in January, but a report said that it had asked several banks to stop issuing loans. The dollar index dropped by a mere 0.2%.
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.