Bullion Weekly Report – 11/28/2009

by Bullion Prices Staff on November 28, 2009

Precious metals fell Friday on worries of a debt default by Dubai World, which helped push the dollar up and made commodities less attractive to investors.

In London bullion weekly prices, gold declined 3.2 percent, silver fell 2.4 percent and platinum lost 0.8 percent. Gold was fixed Friday at $1,104.00 an ounce, dropped $36.00 this week. Silver closed to $17.74 an ounce, falling 44 cents from last Friday’s close. Platinum ended at $1,424.00 an ounce, declining $11.00 since last Friday’s close.

In New York bullion weekly prices, gold rose 2.4%, silver fell 0.7% and platinum climbed 0.4%. On Friday, New York gold for December delivery finished at $1,174.20 for a five-day gain of $27.40. December silver futures ended at $18.302 for a weekly loss of 13.8 cents. Platinum for January delivery closed to $1,447.10, advancing $5.20 on the week.

"This sell-off is predicated on concerns about the fragility of the financial system. It reminds investors that there are still huge risks out there," Bart Melek, global commodity strategist at BMO Capital Markets, said on Reuters.

"The market is reacting to the news on Dubai," Bernard Sin, the head of currency and metals trading at bullion refiner MKS Finance SA in Geneva, said on Bloomberg. "A dollar bounce likely means gold will sell off. People are trying to take profit."

"The Dubai news is the first major negative news in the past two to three months for investors," Chintan Karnani, analyst at Insignia Consultants in New Delhi, was quoted on MarketWatch. "This has resulted in an excuse for profit-taking."

To follow are silver, gold and platinum performance charts.

London Fix Weekly Bullion Prices

(Nov 20 – 27)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-2.4%
-$0.44
$17.74
Gold
 
X
-3.2%
-$36.00
$1,104.00
Platinum
 
X
-0.8%
-$11.00
$1,424.00

(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
*Week change numbers are for Friday PM-Friday PM

New York oil for January delivery on Friday plunged $1.91, or 2.4 percent, to close at $76.05 a barrel. For the week, oil lost 67 cents, or 0.9 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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