Bullion metals close little short of record high

Bullion metal prices ended higher on Friday, 25 June 2010 at Comex with gold closing a little shy of its all time record high. Weak dollar and downward revision of first quarter GDP figure pushed prices higher on Friday. But gold registered marginal weekly losses. 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 August delivery ended at $1,256.2 an ounce, higher by $10.3 (0.8%) an ounce on the New York Mercantile Exchange. During intra day trading, prices rose to a high of $1,259.5. Before this, last Friday, 18 June, prices rose to a high of $1263.7 during intra day trading. But for the week, gold ended little lower after witnessing four consecutive weekly gains. For the week, gold ended lower by 0.2%. Gold for June delivery had settled above $1,200 in early December 2009, only to pull back to $1,172 area and dip as much as the $1,050 vicinity in early February 2010. Gold ended May higher by 3%. For the month of April, gold ended higher by 6%. For the first quarter of this year, gold rose by 1.7%, its sixth quarterly rise. On a year to date basis, gold is higher by 14%. On Friday, July Comex silver futures ended higher by 37 cents (2.1%) at $19.11 an ounce. For the week, silver ended lower by 0.4%. For May, silver shed 1.1%. For the month of April, silver ended higher by 4.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 7.4%. In the currency market on Friday, the dollar index, which measures the strength of the dollar against a basket of six other currencies fell by 0.4%. On Friday, data showed that U.S. real gross domestic product for the first quarter was revised down to an increase of 2.7% annualized from the earlier estimate of a 3.0% rise. The change resulted largely from weaker consumer spending and a ballooning trade deficit. 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.