Bullion Prices Rise, Gold Nears $1,120 an Ounce – 11/11/2009

by Bullion Prices Staff on November 11, 2009

New York bullion futures rose Wednesday with gold rising for the eighth consecutive day and hitting a fresh all-time high. Prices neared $1,120 an ounce with reports citing increased interest in the yellow metal by central banks. New York precious metal figures follow:

  • Gold for December delivery rose $12.10, or 1.1% to $1,114.60 an ounce. It ranged from $1105.60 to $1119.10.

  • Silver for December delivery jumped 31.5 cents, or 1.8%, to $17.537 an ounce. It ranged from $17.330 to $17.725.

  • January platinum advanced $18.40, or 1.4%, to $1,369.90 an ounce.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,115.25 an ounce, which was an increase of $13.75 from the Wednesday PM price. Silver climbed 37 cents to $17.63 an ounce. Platinum was settled to $1,365.00 an ounce for a $11.00 gain.

Notable bullion quotes of the day follow:

"The interest that central banks have shown for gold has really lit a fire under the market," Matt Zeman, a metals trader at LaSalle Futures Group Inc. in Chicago, was quoted on Bloomberg.com. "People are questioning the value of not only the U.S. currency, but all paper currencies. Investors are more comfortable holding gold."

"As long as the U.S. dollar is trending down, the gold price is unlikely to soften meaningfully," wrote analysts at Commerzbank in a note to clients that was cited on MarketWatch.com.

"Prices are bumping up against key resistance areas in concert with key cycles being also due. Resistance at $1,105-$1,110 having been overcome, it is now followed by $1,132-$1,150," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "The possibility of a high to be put into place during this week and a correction subsequently taking place is growing with each passing day."

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.

New York crude-oil for December delivery climbed 23 cents, or 0.3 percent to $79.28 a barrel.

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