Gold Advances Above $1,090/oz – Feb 11, 2010

by Bullion Prices Staff on February 11, 2010

US gold jumped 1.7% higher on Thursday following a 0.1% decline on Wednesday, and marked the best daily gain in more than a week. The yellow metal rose following reports that the European Union would help Greece in its debt crisis. Other metals climbed as well, with silver gaining 1.9% and platinum rising 0.4%. New York precious metal prices follow:

  • April gold rose $18.40 to $1,094.70 an ounce. It ranged from $1,072.90 to $1,095.90.

  • March silver advanced 29 cents to close at $15.590 an ounce. It ranged from $15.175 to $15.665.

  • April platinum gained $6.40 to end at $1,519.30 an ounce. It ranged from $1,496.10 to $1,527.30.

In PM London bullion, the benchmark gold price was fixed to $1,076.25 an ounce, which was an increase of $6.75 from Wednesday. Silver fell 23 cents to $15.370 an ounce. Platinum remained unchanged at $1,511.00.

"Gold is moving along with all of the commodities," Adam Klopfenstein, a senior market strategist with MF Global Holdings Ltd.’s Lind-Waldock unit, said on Bloomberg. Buoyed by economic optimism, "people want to embrace gold with the overall risk-tolerance that is coming back into the market today," he added.

"The deal that was expected to be reached regarding the fate of Greece’s debt problems was indeed reached early this morning," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "What then followed was also what was largely to be expected in various markets; Greek bond yields fell further, the euro climbed a tad, European shares rose mildly higher, and the dollar slipped marginally on the trade-weighted index… All of the above factors conspired to bring gold back up."

New York crude-oil for March delivery rose 76 cents, or 1%, to finish at $75.28 a barrel.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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