Bullion Prices Advance Despite Stronger Dollar – 12/02/2009

by Bullion Prices Staff on December 3, 2009

Despite a stronger dollar, New York gold prices hit another record Wednesday to reach another all-time record high and for the second straight day. Silver and platinum rose as well, while black gold plunged for the first time in three days. New York precious metal prices follow:

  • Gold for February delivery rose $12.80, or 1.1 percent, to $1,213.00 an ounce. It ranged from $1,196.50 to $1,218.40 — the new all-time high.

  • Silver for March delivery advanced 11.5 cents, or 0.6 percent, to $19.325 an ounce. It ranged from $19.10 to $19.47 — the highest price since
    July 2008.

  • January platinum surged $19.70, or 1.3 percent, to $1,506.30 an ounce. It ranged from $1,486.60 to $,1514.80.

In PM London bullion prices, the benchmark gold price was fixed earlier in the day to $1,212.50 an ounce, which was an increase of $20.00 from Tuesday. Silver went up 46 cents to $19.180 an ounce. Platinum was settled at $1,485.00 an ounce, for a gain of $15.00.

Notable bullion quotes of the day follow:

"Investors aren’t getting paid to have money in cash, so money is finding its way off of the sidelines and into gold and other commodities," Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund, said on MarketWatch.

"Gold will go up, as will other commodities," Mark Mobius, the chairman of Templeton Asset Management Ltd., said in a Bloomberg Television interview today from Hong Kong. "It’s basically the devaluation of currencies, which is ongoing and will be ongoing for many years to come."

"Continuing dollar weakness made for one more overnight record – the 21st in 23 days (!) in gold prices — this time near $2018 per ounce," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "The financial media is-by now-yawning at the prospects of having to write yet another story on the subject of gold price records, having run out of uber-bullish statements from every possible source."

New York crude-oil for January delivery plunged $1.77, or 2.3 percent, to $76.60 a barrel. Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

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