Precious metals shed glaze

Prices drop as dollar moves up

Precious metal prices dropped on Tuesday, 08 March 2011 at Comex. Prices dropped as the dollar strengthened against its counterparts and traders shifted their attention to latest developments in Libya.

Gold for April delivery fell $7.3, or 0.5%, to $1,427.2 an ounce on the Comex division of the New York Mercantile Exchange. Last week, gold gained 1.4%.



Gold ended the month of February higher by 5.6% following a 6.1% drop in January 2011. For the year of 2010, gold ended higher by 30%, its tenth consecutive yearly gain.

Silver prices for May delivery dropped 21 cents (0.6%) to end at $35.66. Last week, silver gained 7.4%. Prices gained more than 20% in February 2011 after shedding 9% this year in January. For the year till date, silver is higher by 14.5%. In FY 2010, silver ended higher by 83.7%.

Latest reports indicated that Libyan leader Moammar Gadhafi may be discussing a deal with opposition members to step down.

In the currency market on Tuesday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.3%.

At the MCX, gold prices for April delivery closed lower by Rs 107 (0.5%) at Rs 21,022 per ten grams. Prices rose to a high of Rs 21,190 per 10 grams and fell to a low of Rs 20,995 per 10 grams during the day's trading.

At the MCX, silver prices for May delivery closed Rs 315 (0.6%) lower at Rs 53,563/Kg. Prices opened at Rs 53,701/kg and fell to a low of Rs 53,210/Kg during the day's trading.