Bullion Weekend Report – 10/24/2009

by Bullion Prices Staff on October 24, 2009

Precious metals enjoyed modest gains on the week as the US dollar was the predominating driver of where prices went. A weaker greenback on Friday combined with lower crude oil prices helped gold slide slightly from earlier week highs. Oil did jump nearly 3.5 percent this week while gasoline prices at the pump were almost 13 cents higher than last Saturday.

In other markets, US stocks declined for the first week in three while European indexes finished mixed with the London FTSE advancing.

In London bullion weekly figures, gold climbed 1.4 percent, silver rose 2.0 percent and platinum jumped 2.4 percent. Friday precious metals prices follow:

London silver closed to $17.65 an ounce, rising 34 cents from last Friday’s close. New York December silver futures ended at $17.723 for a 30.3 cent weekly increase.

London gold was fixed at $1,061.75 an ounce for a $14.25 gain on the week. New York gold for December delivery finished at $1,056.40 for a weekly gain of $5.70.

London platinum ended at $1,372.00 an ounce, advancing $32.00 since last Friday’s close. New York platinum for January delivery ended at $1,369.50 for a $21.00 weekly rise.

“The biggest threat for gold is if the dollar makes a significant move higher,” Gijsbert Groenewegen, a partner at Gold Arrow Capital Management, a New York-based hedge fund, said on Bloomberg. “It could have a significant impact on prices.”

Gold fell “on the back of a stronger dollar,” James Moore, an analyst at TheBullionDesk.com, was quoted on MarketWatch. “Gold will look to hold the current $1,040 to $1,065 range as players continue to look to the dollar and broader risk sentiment for direction.”

“Over in fundamentals land, while fresh indications from India reveal a possible slight up tick in festival period-related demand for the yellow metal, the year-end Indian gold import tally is likely to be anything but rosy,” wrote Jon Nadler, Sr. analyst at Kitco Metals Inc.

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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