Prices fluctuate amid narrow margin
Bullion metal prices ended mixed on Friday, 13 August 2010 at Comex. Gold prices dropped while silver prices gained. Prices fluctuated amid narrow margin due to strong dollar and mixed economic data.
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. Recently, the embattled euro has played stronger role in moving prices rather than dollar fluctuation. Bullion metals have registered increase in prices despite strong dollar in recent times and vice versa.
On Friday, gold for December delivery ended at $1,216.6 an ounce, lower by $0.1 (0.01%) on the New York Mercantile Exchange. For the week, gold ended higher by 0.9%.
Gold ended the month of July lower by 5%. It was the worst monthly loss for gold since December 2009. Before this, it ended June higher by 2.5%. For the second quarter, gold ended up by 12%, its seventh consecutive quarterly gain. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 11.7%.
On Friday, September Comex silver futures ended higher by 4 cents (0.2%) at $18.11 an ounce. For the week, silver ended lower by 2%. For the month of July 2010, silver shed 3.7%. For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 2.1%.
In the currency market on Friday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.3%.
Among economic data expected for the week, the University of Michigan/Reuters index of consumer confidence rose to 69.6 in August from 67.8 in July and topped expectations. Separately, the Commerce Department showed June business inventories went up 0.3%.
But before the bell Friday, a report showed U.S. retail sales rose 0.4% in July, just less than market' expectations. Separately, the Labor Department said its consumer price index, tracking inflation at the retail level, grew by 0.3% last month.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
