FX.co ★ Gold review for May 13, 2011

Futures on gold grew on Thursday and closed over USD 1500 amid a weakening dollar in the second part of the session and closing short positions
Futures on gold increased on Thursday and closed at the level of USD 1500 amid a weakening dollar in the second part of the session and closing short positions. May contract closed with a gain of USD 5.50 (0.4%), having constituted USD 1506 per ounce.
Amid a weakening US dollar investors got back to the market of precious metals. Declining US currency makes futures cheaper for holders of other currencies.
Earlier during trades gold futures dropped following a fall a day before. Prices started to decline after publication of the data on gasoline reserves when a sharp fall in gasoline futures quotations caused suspense in NYMEX trades after an unexpected growth of the US reserves. This abrupt drop influenced prices for precious metals as traders hit by correction of prices for raw materials last week were selling their assets.
Gold market showed uprise amid substantial demand: gold proved to be more stable than silver which closed with a loss on Thursday. By the end of COMEX trades May futures on silver dropped by 71.6 cent (2%) down to USD 34.793 per ounce. July contract cheapened lost 71.8 cent (2%) and equaled USD 34.797 per ounce.
Silver prices declined by 27 % from their record high of USD 50, which was achieved last week. Futures on silver started to decrease after CME Group raised its margin requirements.