Precious metal prices rose higher on Wednesday, 21 October, 2009. Prices rose today as the dollar slumped to fresh fourteen month low.
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 December delivery ended at $1,064.5, higher by $5.9 (0.6%) an ounce on the New York Mercantile Exchange. In the last week gold had registered record highs quite a few times. It reached an all time high of $1071 earlier last week. Last week, gold ended higher by 0.3%. Year to date, gold prices are higher by 20.6%.
Gold ended September, 2009 higher by 5.9%. For the third quarter it ended higher by 8.7%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On Wednesday, December Comex silver futures ended higher by 27 cents (1.5%) at $17.825 an ounce.
Silver ended 11.8% higher for September, 2009. Year to date, silver has climbed 60.5% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies fell by almost 0.8%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for December delivery closed higher by Rs 36 (0.22%) at Rs 15,949 per 10 grams. Prices rose to a high of Rs 15,986 per 10 grams and fell to a low of Rs 15,855 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 229 (0.84%) higher at Rs 27,340/Kg. Prices opened at Rs 27,050/kg and rose to a high of Rs 27,390/Kg during the day's trading.
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