Gold for February delivery ended higher by $13 or 0.8%, to end at $1,744.8 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday. It rose to a high of $1,747 and fell to a low of $1,723.6 during intra day trading. Last week, gold gained 3.9%. It was first weekly gain for gold in three weeks.
On Wednesday, silver prices for March delivery fell $0.12 or 0.4% to end at $32.63. Last week, silver gained 5.4%. For the month of November, silver lost 4.7%.
In the currency market on Wednesday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies stayed steady. The dollar gave back its morning gain and was trading lower against collection of competing currencies by about 0.2% earlier during 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 and also vice versa. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa.
The market place is still looking to the ongoing European Union debt crisis and the latest developments coming from EU and IMF. There is an important EU summit meeting Friday that is the latest "very important meeting" to surface in this seemingly never-ending debacle. Talk in the market place now is that Germany is dragging its feet on any firm decisions coming out of Friday's meetings. The general tenor of the market place, regarding the EU situation, is a bit calmer this week than in recent weeks. More and more traders and investors are reckoning the worst may now be past regarding the EU debt crisis.
At the MCX, gold prices for February delivery closed higher by Rs 294 (1%) at Rs 29,247 per ten grams. Prices rose to a high of Rs 29279 per 10 grams and fell to a low of Rs 28,998 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed higher by Rs 218 (0.4%) at Rs 57,190/Kg. Prices opened at Rs 57,188/kg and rose to a high of Rs 57,549/Kg during the day's trading.
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