Precious metal prices rose at USA on Wednesday, 24 June, 2009 ahead of the Federal Reserve's afternoon monetary-policy statement. Traders mulled over the fact that Fed won't be able to move quickly enough to withdraw the trillions of dollars thrown at the financial system, which could lead to higher inflation. That would encourage more purchases of precious metals, an alternate source for investment. Prices rose today despite the strong dollar.
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 August delivery ended at $934.4, higher by $10.1 (1%) an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 0.5%. Year to date, gold prices are higher by 7.5%.
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 (10%) since then.
On Wednesday, Comex silver futures for July delivery rose 7 cents (0.5%) at $13.91 an ounce. Last week, silver ended lower by 4.5%.
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 27.2% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the dollar rallied after the Federal Reserve left interest rates unchanged and said it will continue to buy Treasurys and other securities as previously announced.
The dollar index, which measures the strength of the dollar against a basket of six other currencies, rose as much as 0.8%.
Federal Reserve policy makers began a two-day meeting yesterday. The central bank has held its benchmark interest rate near zero since December. 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 128 (0.88%) at Rs 14,613 per 10 grams. Prices rose to a high of Rs 14,823 per 10 grams and fell to a low of Rs 14,463 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 73 (0.32%) higher at Rs 22,631/Kg. Prices opened at Rs 22,304/kg and rose to a high of Rs 22,631/Kg during the day's trading.
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 August delivery ended at $934.4, higher by $10.1 (1%) an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 0.5%. Year to date, gold prices are higher by 7.5%.
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 (10%) since then.
On Wednesday, Comex silver futures for July delivery rose 7 cents (0.5%) at $13.91 an ounce. Last week, silver ended lower by 4.5%.
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 27.2% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the dollar rallied after the Federal Reserve left interest rates unchanged and said it will continue to buy Treasurys and other securities as previously announced.
The dollar index, which measures the strength of the dollar against a basket of six other currencies, rose as much as 0.8%.
Federal Reserve policy makers began a two-day meeting yesterday. The central bank has held its benchmark interest rate near zero since December. 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 128 (0.88%) at Rs 14,613 per 10 grams. Prices rose to a high of Rs 14,823 per 10 grams and fell to a low of Rs 14,463 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 73 (0.32%) higher at Rs 22,631/Kg. Prices opened at Rs 22,304/kg and rose to a high of Rs 22,631/Kg during the day's trading.
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