Gold and Silver prices suffer a sharp setback
Following the world financial markets sell-off, Gold and Silver prices suffer a sharp setback.
US dollar registers huge gains against Euro, GBP & Indian Rupee but plummets against
Japanese Yen on unwinding of ?carry trades? The precious metals finished the last week deep into red. Led by a sell-off in the global equity markets owing risk aversion, gold and silver prices plunged to their lowest levels in several months on Thursday. Thanks to the damage control measures initiated by the US Fed on Friday, the precious metals managed to recover a part of the deep losses suffered mid-week.
In the currency market the Yen climbed to fourteen months high against the US dollar as the tumbling Asian stock markets gave a fresh impetus to the unwinding of carry trades seen in the earlier week.
DGCX gold futures contract for October delivery began the week on a fairly buoyant note at $675/troy oz. It reached a high of $676.40 before plummeting down to an intraweek low of $646.30 on Thursday. The last trading day of the week saw a rally taking the prices to a much better closing level of $660.90/troy oz. The contract suffered a loss of $16.60 or 2.45% for the week. Silver prices initially followed the movement in gold prices but later in the week detached itself. DGCX silver contract maturing in September 2007 opened the week at $12.85/troy oz and scored an intraweek high of $13.50 before plunging to a low of $11.68/troy oz. The contract finally settled at $11.785/troy oz registering a massive loss of $1.075 per ounce or 8.36% for the week.
In the currency markets, the DGCX Sept?07 maturity Euro contract started trading on Monday at $1.3716. This incidentally remained its highest level for the week. It subsequently tumbled to an intra week low of $1.3392 before concluding the week at $1.3495/Euro. The contract recorded a substantial loss of 1.61% during the week. DGCX GBP contract dated Sept?07 opened at $2.0212/GBP and initially rose to an intra week high of $2.0231. Later in the week it declined steeply to a low of $1.9646 losing nearly 600 ticks. A small recovery on Friday saw the contract conclude the week at $1.9787/GBP churning a loss of 2.06% for the week. DGCX Yen futures contract maturing in September zoomed by 3.32% during the week and settled at an exchange rate of $0.8773 for 100 yen. DGCX Indian Rupee futures for August depreciated by 2.23% against the US dollar to end the week at $2.4056 for 100 rupees. Source
US dollar registers huge gains against Euro, GBP & Indian Rupee but plummets against
Japanese Yen on unwinding of ?carry trades? The precious metals finished the last week deep into red. Led by a sell-off in the global equity markets owing risk aversion, gold and silver prices plunged to their lowest levels in several months on Thursday. Thanks to the damage control measures initiated by the US Fed on Friday, the precious metals managed to recover a part of the deep losses suffered mid-week.
In the currency market the Yen climbed to fourteen months high against the US dollar as the tumbling Asian stock markets gave a fresh impetus to the unwinding of carry trades seen in the earlier week.
DGCX gold futures contract for October delivery began the week on a fairly buoyant note at $675/troy oz. It reached a high of $676.40 before plummeting down to an intraweek low of $646.30 on Thursday. The last trading day of the week saw a rally taking the prices to a much better closing level of $660.90/troy oz. The contract suffered a loss of $16.60 or 2.45% for the week. Silver prices initially followed the movement in gold prices but later in the week detached itself. DGCX silver contract maturing in September 2007 opened the week at $12.85/troy oz and scored an intraweek high of $13.50 before plunging to a low of $11.68/troy oz. The contract finally settled at $11.785/troy oz registering a massive loss of $1.075 per ounce or 8.36% for the week.
In the currency markets, the DGCX Sept?07 maturity Euro contract started trading on Monday at $1.3716. This incidentally remained its highest level for the week. It subsequently tumbled to an intra week low of $1.3392 before concluding the week at $1.3495/Euro. The contract recorded a substantial loss of 1.61% during the week. DGCX GBP contract dated Sept?07 opened at $2.0212/GBP and initially rose to an intra week high of $2.0231. Later in the week it declined steeply to a low of $1.9646 losing nearly 600 ticks. A small recovery on Friday saw the contract conclude the week at $1.9787/GBP churning a loss of 2.06% for the week. DGCX Yen futures contract maturing in September zoomed by 3.32% during the week and settled at an exchange rate of $0.8773 for 100 yen. DGCX Indian Rupee futures for August depreciated by 2.23% against the US dollar to end the week at $2.4056 for 100 rupees. Source
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