Precious metals ended in a mixed mode on Thursday, 13 January 2011 at Comex. Yellow metal prices inched up as the dollar retreated considerably. But silver prices ended with losses. Prices stayed weak earlier in the day as most of the pressure in the European region regarding concerns over sovereign debt problems eased. On Thursday, gold for February delivery rose by $1.2 (0.1%) ending at $1,387 an ounce on the New York Mercantile Exchange. Prices fell to a low of $1,377.1 and rose to a high of $1,392.1 during intra day trading. Last week, gold ended lower by 3.7%. For the month of December, gold ended higher by 2.5%. It ended the fourth quarter, higher by 8%, its ninth consecutive quarterly gain. Before this, it ended the third quarter higher by 5%. For the second quarter, gold ended up by 12%. For the first quarter of 2010, gold rose by 1.7%. For the year of 2010, gold ended higher by 30%, its tenth consecutive yearly gain. 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. On Thursday, March Comex silver futures ended lower by 28 cents (1%) at $29.26. Prices lost 7.3% last week. Silver prices gained almost 55% in the fourth quarter of this year. For the third quarter, silver gained nearly 18%. For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. In FY 2010, silver ended higher by 83.7%. In the currency market on Thursday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies dropped by 1.1%. The Labor Department in US reported on Thursday, 13 January 2011 that the number of U.S. workers who filed new applications for jobless benefits jumped 35,000 last week to 445,000, the highest level in more than two months. A government official attributed the sharp increase largely to administrative backlogs. The four-week average of new claims rose a much smaller 5,500 to 416,500. Bullion metal prices are expected to continue with their joyride in the coming months with gold expected to reach between $1,600 and $1,700 an ounce and silver likely to attempt to test highs in the $50 area. At the MCX, gold prices for February delivery closed higher by Rs. 38 (0.2%) at Rs. 20,438 per ten grams. Prices rose to a high of Rs. 20,514 per 10 grams and fell to a low of Rs. 20,375 per 10 grams during the day's trading. At the MCX, silver prices for March delivery closed Rs. 258 (0.6%) lower at Rs. 44,642/Kg. Prices opened at Rs. 44,956/kg and fell to a low of Rs. 44,552/Kg during the day's trading.

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