Bullion Weekly Report – 11/21/2009

by Bullion Prices Staff on November 21, 2009

Precious metals enjoyed solid weekly gains in both New York and London. Inflation and economic concerns topped with worries over a weaker US dollar were issues most cited for gold’s rise, and the other metals following.

In London bullion weekly prices, gold rose 3.3%, silver surged 5.0% and platinum soared 5.6%. Gold was fixed Friday at $1,140.00 an ounce, rising $36.00 on the week. Silver closed to $18.18 an ounce, jumping 86 cents from last Friday’s close. Platinum ended at $1,435.00 an ounce, climbing $76.00 since last Friday’s close.

In New York bullion weekly prices, gold rose 2.7%, silver advanced 6.1% and platinum jumped 3.8%. On Friday, Gold for December delivery finished at $1,146.80 for five-day gain of $30.10. Silver for December ended at $18.44 for a weekly $1.06 increase. Platinum for January delivery ended at $1,441.90, advancing $53.20 on the week.

"People want to buy gold on breaks. Gold will hold its stability relative to other asset classes as long as there are economic uncertainty and potential for inflation going forward," Adam Klopfenstein, senior market strategist at Lind-Waldock, said on Reuters.

"Inflation worries and recession worries bring gold buyers as low interest rates make it a good alternative to short term fixed income," George Gero, a precious-metals trader for RBC Capital Markets, said on MarketWatch. "Longer term holders are evident" with investors purchasing more contracts for delivery in future months.

"People are still buying gold because they think the dollar hasn’t been broken yet," Marty McNeill, a trader at R.F. Lafferty Inc. in New York, said on Bloomberg. "If the dollar rallies, it’s an excuse to sell for profit. Any dip in prices is a buying opportunity."

"’Corrections’ have been ultra-shallow up to this point, despite growing nervousness about the sustainability of the patterns now in place since the first day of September. Thus, we still expect to see attempts at higher levels not only today, but perhaps next week as well," Jon Nadler, senior analyst at Kitco Metals, Inc, wrote earlier Friday.

London Fix Weekly Bullion Prices

(Nov 13 – 20)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
5.0%
$0.86
$18.18
Gold
X
 
3.3%
$36.00
$1,140.00
Platinum
X
 
5.6%
$76.00
$1,435.00

(Nov 6 – 13)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-1.2%
-$0.20
$17.32
Gold
X
 
0.7%
$7.25
$1,104.00
Platinum
X
 
0.9%
$12.00
$1,359.00

 

New York oil for December delivery on Friday fell 74 cents, or 1.0 percent, to close at $76.72 a barrel. For the week, however, oil gained 37 cents, or 0.5 percent.

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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