Gold Advances, First Day in Four; Silver and Platinum Gain – February 25, 2010

by Bullion Prices Staff on February 25, 2010

Gold on Thursday broke away and slid higher after falling for three straight days. Greek debt worries again came into picture early in the morning, which helped the dollar and initially hurt gold. The situation settled in the afternoon and the dollar pared gains while gold broke into positive ground.

In New York precious metals futures prices, April gold gained $11.30, or 1.0%, to $1,108.50 an ounce. It ranged from $1,088.50 to $1,110.00. May silver climbed 16.9 cents, or 1.1%, to close at $16.132 an ounce. April platinum rose $23.90, or 1.6%, to end at $1,531.20 an ounce.

"We expect dips to continue to draw investment support on inflation or deflation concerns and Greek downgrade or default worries, with gold holding in a broad band between $1,074 and $1,130," analysts at Bullion Desk said and were cited on MarketWatch.

In PM London bullion, the benchmark gold price was fixed earlier in the North American day to $1,094.50 an ounce, which was a decline of $8.50 from the price on Wednesday. Silver rose 16 cents to $15.920 an ounce. Platinum was settled at $1,514.00 an ounce, rising $10.00.

"In recent sessions gold has manifested a correlation to other assets (such as stocks), and is now being sold off in concert with rising risk aversion," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "However, at the end of the day gold remains largely defined by the movements of the US currency against its ever shakier rivals overseas."

New York oil for April delivery fell $1.83, or 2.3%, to end at $78.17 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.

The latest US Mint weekly sales figures are out, and show steady bullion eagle sales. On the numismatic front, the Mint today released Disabled Veterans Silver Commemoratives in both proof and uncirculated condition. During an introductory period lasting through to March 29, 2010, these coins will be available for $39.95 and $33.95, respectively. Prices will increase after to $43.95 and $35.95. The coins are made from 90% silver and 10% copper.

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