Precious metal prices went down on Friday, 12 June, 2009. They fell as the dollar strengthened against the euro mainly ahead of the meeting of the Finance ministers from the Group of Eight industrial nations thereby decreasing their appeal as a hedge against inflation. Nevertheless, gold registered weekly gains but silver incurred loss.
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, Comex Gold for August delivery ended at $940.7, lower by $21.3 (2.2%) an ounce on the New York Mercantile Exchange. For the week, gold ended higher by 2.3%. Year to date, gold prices are higher by 8.6%.
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 (9%) since then.
On Friday, Comex silver futures for July delivery fell 61.8 cents (4%) at $14.875 an ounce. For the week, silver ended lower by 3.3%. 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 33.7% this year. For 2008, silver had lost 24%.
In the currency market on Friday, the dollar index, which weighs the strength of dollar against the basket of six other currencies, went up by 0.9%.
Finance ministers from the Group of Eight industrial nations convened on Friday and Saturday in Italy as they attempted to lay groundwork for the meeting of G8 heads of state at their summit scheduled for next month.
The dollar was higher against most of its rivals, with the euro down 0.5%. In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
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, Comex Gold for August delivery ended at $940.7, lower by $21.3 (2.2%) an ounce on the New York Mercantile Exchange. For the week, gold ended higher by 2.3%. Year to date, gold prices are higher by 8.6%.
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 (9%) since then.
On Friday, Comex silver futures for July delivery fell 61.8 cents (4%) at $14.875 an ounce. For the week, silver ended lower by 3.3%. 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 33.7% this year. For 2008, silver had lost 24%.
In the currency market on Friday, the dollar index, which weighs the strength of dollar against the basket of six other currencies, went up by 0.9%.
Finance ministers from the Group of Eight industrial nations convened on Friday and Saturday in Italy as they attempted to lay groundwork for the meeting of G8 heads of state at their summit scheduled for next month.
The dollar was higher against most of its rivals, with the euro down 0.5%. In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
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