Monday, April 26, 2010

Superior Gold Group - Precious metals end on a strong note

 Precious metal prices ended higher on Friday, 23 April 2010 at Comex. Strong economic data weakened the dollar thereby imparting some shine on precious metals. Prices fell earlier in the day due to weak durable goods report. Then strong housing data pulled up prices.
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.
On Friday, gold for June delivery ended at $1,153.7 an ounce, higher by $10.8 (0.9%) an ounce on the New York Mercantile Exchange. Earlier during the day, it fell to a low of $1,135.2. For the week, gold ended higher by 1.5%. For the month of March, gold slid 0.4%. 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 5.2%.
On Friday, May Comex silver futures ended higher by 18 cents (1%) at $18.19 an ounce. For the week, silver lost 2.9%. For the month of March, silver ended higher by 5%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 6.9%.
In the currency market on Friday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.12%.
Among economic reports expected for the day, The Commerce Department in US reported on Friday, 23 April 2010 that demand for U.S made durable goods dropped for the first time in four months as orders for new aircraft plunged 67%. But, excluding transportation, orders rose at the fastest pace in more than two years. As per the report, orders for durable goods fell 1.3% in March to a seasonally adjusted $176.7 billion after a 1.1% gain in February. Excluding transportation goods, however, new orders rose 2.8% to $136.5 billion in March, the fastest growth since the recession began in December 2007.

Elsewhere, The Commerce Department in US reported on Friday, 23 April 2010 that sales of new homes in US surged 27% in March to a seasonally adjusted annual rate of 411,000 after hitting a record low in February. The increase in sales was boosted by soon-to-expire tax break, low mortgage rates, and favorable weather. It was the largest percentage gain in sales since April 1963. It was the highest sales pace since July, and much stronger than the 335,000 expected. Sales in December, January and February were revised higher. In February, sales were revised to a 324,000 annualized pace, up from 308,000. It's still the lowest on record, dating to 1963. Sales are up 24% compared with March 2009, but are down 70% from the peak in 2005.

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.

source: BloombergUTV