Bullion Prices Fall, with Silver Dropping Below $17 – 12/30/2009

by Bullion Prices Staff on December 30, 2009

US bullion prices fell on Wednesday as a stronger dollar lessened investors’ attraction toward gold, and the other metals followed. By close, gold lost 0.5%, silver shrunk 1.8% and platinum declined 1.0%. New York precious metal prices follow:

  • Gold for February delivery declined $5.60 to $1,092.50 an ounce. It ranged from $1,098.70 to $1,086.60.

  • Silver for March delivery plunged another 30.8 cents to close at $16.802 an ounce. It ranged from $17.175 to $16.765.

  • January platinum fell $14.80 to end at $1,452.30 an ounce. It ranged from $1,470.60 to $1,441.70.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,087.50 an ounce, which was a decline of $18.50 from Tuesday. Silver fell 50 cents to $16.920 an ounce. Platinum was settled at $1,461.00 an ounce, falling $11.00.

Notable bullion quotes follow:

"We would look for gold and the rest of the precious metals to track the movements of the dollar," James Moore, an analyst at TheBullionDesk.com, was quoted on MarketWatch. "Given the recovery in the dollar, we would not rule out a deeper pull-back to the $1,050 level."

"Gold prices are mirroring a rebound in the dollar with few in the market willing to trade actively," Park Jong Beom, a trader with Tongyang Futures Co. in Seoul, said on Bloomberg. "Gold will resume its feisty rally in the new year as an economic recovery reignites talk of an inflation hedge."

"Further price weakness was on tap for gold as the last full trading session got underway this morning in New York. Following yesterday’s breach of the $1100 mark, the yellow metal encountered additional waves of year-end selling and sank to lows near $1087.50 overnight," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "Dollar strength, final book-squaring, and thin participation were cited as the prime culprits in gold’s renewed descent."

New York oil rallied for the sixth straight day, rising 41 cents, or 0.5%, to $79.28 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.

In related US Mint silver coin news of the day, read 2009 Bullion Silver Eagles Peak.

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