Gold and silver prices register losses for the week
Bullion metal prices registered losses on Friday, 01 August, 2008 after the US dollar strengthened. It also incurred losses for the week. Silver prices also fell for the day.
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. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.
Comex Gold for August delivery fell $5.2 (0.56%) to close at $917.5 ounce on the New York Mercantile Exchange. For the week, it ended lower by 2.1%. Gold ended July, 2008 lower by $11 (1.1%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.
This year, gold prices have gained 9.4% till date against a 8.8% drop for the dollar against the euro. The yellow metal ended second quarter with a marginal gain of 0.7%. Gold prices ended June, 2008 with a gain of 4.1%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, for April, prices closed lower by 6.3%.
For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.
On Friday, Comex silver futures for September delivery fell 27 cents (1.6%) to $17.52 an ounce. Silver has gained 19% in 2008 till date. It ended July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%.
Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
At the currency markets on Friday, the dollar index which tracks the performance of the dollar against other major currencies, was at 73.43, compared with 73.196 in previous closing.
According to the latest economic data, the Labor Department reported that nonfarm payrolls fell by 51,000 in July compared with a decline of 70,000 expected by the market. The unemployment rate jumped to 5.7%, a four-year high.
After gaining earlier on the slightly better than expected nonfarm payrolls, the dollar gave up a small bit of ground after data showed flat U.S. manufacturing activity and a drop in spending on U.S. construction projects. The Commerce Department said construction spending fell by 0.4% in June, more than the 0.3% expected. The Institute for Supply Management's manufacturing index was 50% in July, indicating an equal number of firms said business was growing or slowing.
At the crude market on Friday, crude-oil futures finished higher with a gain of 1.5% for the week, as fresh concerns over a possible Israeli strike on Iran and weakness in the U.S. stock market prompted investors to lift oil prices to close above $125 per barrel. Crude oil for September delivery closed at $125.10 a barrel on the New York Mercantile Exchange. It climbed $1.02 for the session and ended 1.5% higher for the week. Earlier Friday, oil futures had fallen to an intraday low of $123.50 a barrel on Nymex.
The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Gold and oil has climbed 34% and 60% since the past one year.
Bullion metal prices registered losses on Friday, 01 August, 2008 after the US dollar strengthened. It also incurred losses for the week. Silver prices also fell for the day.
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. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.
Comex Gold for August delivery fell $5.2 (0.56%) to close at $917.5 ounce on the New York Mercantile Exchange. For the week, it ended lower by 2.1%. Gold ended July, 2008 lower by $11 (1.1%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.
This year, gold prices have gained 9.4% till date against a 8.8% drop for the dollar against the euro. The yellow metal ended second quarter with a marginal gain of 0.7%. Gold prices ended June, 2008 with a gain of 4.1%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, for April, prices closed lower by 6.3%.
For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.
On Friday, Comex silver futures for September delivery fell 27 cents (1.6%) to $17.52 an ounce. Silver has gained 19% in 2008 till date. It ended July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%.
Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
At the currency markets on Friday, the dollar index which tracks the performance of the dollar against other major currencies, was at 73.43, compared with 73.196 in previous closing.
According to the latest economic data, the Labor Department reported that nonfarm payrolls fell by 51,000 in July compared with a decline of 70,000 expected by the market. The unemployment rate jumped to 5.7%, a four-year high.
After gaining earlier on the slightly better than expected nonfarm payrolls, the dollar gave up a small bit of ground after data showed flat U.S. manufacturing activity and a drop in spending on U.S. construction projects. The Commerce Department said construction spending fell by 0.4% in June, more than the 0.3% expected. The Institute for Supply Management's manufacturing index was 50% in July, indicating an equal number of firms said business was growing or slowing.
At the crude market on Friday, crude-oil futures finished higher with a gain of 1.5% for the week, as fresh concerns over a possible Israeli strike on Iran and weakness in the U.S. stock market prompted investors to lift oil prices to close above $125 per barrel. Crude oil for September delivery closed at $125.10 a barrel on the New York Mercantile Exchange. It climbed $1.02 for the session and ended 1.5% higher for the week. Earlier Friday, oil futures had fallen to an intraday low of $123.50 a barrel on Nymex.
The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Gold and oil has climbed 34% and 60% since the past one year.
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