Bullion Weekly Report: Gold, Silver and Platinum Prices – February 13, 2010

by Bullion Prices Staff on February 13, 2010

Bullion prices made headway this week after deep falls last week. Gold mostly moved inversely with the dollar, which tended to react to economic news in Europe and China. Concerns over the Greece debt crisis continued to be a factor for much of the week. As worries peaked, the euro fell and the greenback rose, lifting precious metals. China jumped into the picture on Friday when it again tightened lending by raising bank-reserve requirements. That news boosted the dollar and pressured metals.

Oil futures on Friday lost $1.15, or 1.5%, to close at $74.13 a barrel. However, prices surged 4.1% for the week. Gold tends to move opposite of the dollar and in the same direction as oil. A rising greenback makes dollar-denominated commodities more expensive for holders of other world currencies.

In New York weekly metals prices, April gold gained $37.20, or 3.5%, to end at $1,090.00 an ounce, halting a four-week losing streak. Silver for March delivery ended at $15.447 an ounce, jumping 62 cents, or 4.2%. April platinum climbed $36.00, or 2.4%, to close at $1,511.10 an ounce.

In London Fix bullion weekly prices, gold rose $24.00, or 2.3%, to $1,082.00 an ounce. Silver advanced 16 cents, or 1.1%, to $15.33 an ounce. Platinum settled at $1,505.00 an ounce, rising $30.00, or 2.0%.

"The gold market has been hit by some very negative news — the Chinese monetary tightening and further unwinding of the carry trade related to uncertainty over Greece," James Steel, chief commodities analyst at HSBC in New York, said on Reuters.

"Gold is reacting to liquidity constraints implemented by the People’s Bank of China and a further strengthening of the dollar," Bayram Dincer, a commodity analyst at LGT Capital Management in Pfaeffikon, Switzerland, said on Bloomberg.

"Yesterday’s Greek-flavored gold rally turned into today’s Chinese-tinged decline as the Beijing government flat-out demanded that banks freeze more money from being lent. The surprise but unsurprising move to raise reserve ratios by half a% comes on the heels of a similar move on January 12, senior analyst at Kitco Metals, Inc."Gold prices turned lower following the Chinese lending-restrictive move "

To follow are silver, gold and platinum performance charts for the month of February.

London Fix Precious Metals Prices

(February 5- 12)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
1.1%
$0.16
$15.33
Gold
X
 
2.3%
$24.00
$1,082.00
Platinum
X
 
2.0%
$30.00
$1,505.00

 

(January 29 – February 5)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-6.9%
-$1.12
$15.17
Gold
 
X
-1.9%
-$20.50
$1,058.00
Platinum
 
X
-2.4%
-$37.00
$1,475.00

 

For live precious metals charts, see the home page or follow daily bullion prices.

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