Gold Advances as Dollar Declines, Silver and Platinum Rise – March 3, 2010

by Bullion Prices Staff on March 3, 2010

US gold climbed to reach a high not seen since January 15. The metal benefited from a rising euro which pressured the dollar. When the greenback declines, gold typically rises as a result. News of Greece deficit cutting plans sparked the euro, according to reports.

In New York precious metal prices, April gold advanced $5.90, or 0.5%, to close at $1,143.30 an ounce, ranging from $1,132.80 to $1,145.80. May silver climbed 26.5 cents, or 1.6%, to end at $17.329 an ounce. It ranged from $16.885 to $17.370.April platinum ended up $7.50, or 0.5%, to $1,583.50 an ounce.

"Gold is going to become the currency of choice as people lose faith in fiat currencies, Matt Zeman, a trader at LaSalle Futures Group in Chicago, said on Bloomberg. "These countries continue to write checks that they can’t cash."

In PM London bullion prices, gold was fixed to $1,136.50 an ounce for a gain of $10.00. Silver climbed 60 cents to $17.170 an ounce. Platinum settled at $1,580.00 an ounce for an increase of $18.00.

"News that Greece has come up with an additional, near-5 billion euro large austerity plan lifted the euro this morning, while contributing to additional declines in the US dollar," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

"Conditions all converged to lift risk appetite and push the greenback to under the 80-mark on the trade weighted index this morning. At the same time, the euro and precious metals (not to mention oil) enjoyed another day in the sun."

New York crude oil for April delivery rose $1.19, or 1.5%, to $80.87 a barrel. Gold normally moves in the same direction as oil, but opposite of the dollar. A rising greenback makes dollar-denominated commodities more expensive for holders of other world currencies.

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