Precious metal prices ended substantially higher for the fourth straight day on Thursday, 05 November, 2009. Prices rose as Fed decided to keep interest rates at extreme low levels. But the relatively strong dollar curbed gold's rise.
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, gold for December delivery ended at $1,089.3, higher by $2 (0.2%) an ounce on the New York Mercantile Exchange. Earlier, it rose to a high of $1095. This was an all time high for the yellow metal. Year to date, gold prices are higher by 24%.
Gold ended October 2009 higher by 3.8%. 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 Thursday, December Comex silver futures ended marginally higher by 1 cent (.01%) at $17.41 an ounce.
Year to date, silver has climbed 60.8% this year. For 2008, silver had lost 24%.
In the currency market on Thursday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies rose against the dollar.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
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