Gold and Platinum Decline as Silver Tumbles – 10/27/2009

by Bullion Prices Staff on October 27, 2009

New York gold declined Tuesday and for the fourth straight day as the dollar advanced on news of a decline in consumer confidence. Silver was pounded hard for a second day, dropping more than 3 percent. Platinum declined as well. New York precious metals figures follow:

  • Silver for December delivery plunged 55.5 cents, or 3.2 percent, to $16.540 an ounce. It ranged from $17.250 to $16.500.
  • Gold for December delivery declined $7.40, or 0.7 percent, to $1,035.40 an ounce. The yellow metal ranged from $1,044.30 to $1,032.90, which was the lowest level since Oct. 6.
  • January platinum fell $26.80, or 2.0 percent, to $1,319.00 an ounce.

Notable bullion quotes of the day follow:

“Stock prices are higher, oil prices are higher, gold is lower: It’s a clear indicator that the dollar is a driving force behind the gold rally,” Bill O’Neill, a managing partner at Logic Investment Services, a commodities brokerage and fund manager, said on MarketWatch.

“Gold doesn’t have that much buying interest,” Matt Zeman, a LaSalle Futures Group Inc. metals trader in Chicago, was quoted on Bloomberg. “The dollar could undergo a wicked short-covering rally, and the gold market needs to look out below.”

“The markets (i.e. the players within them) have to yet convince us that this tectonic shift in sentiment is genuine, and that it is sustainable,” wrote Jon Nadler, senior analyst at Kitco Metals, Inc. “A correction, this appears to be. Not a very significant one, as yet. If a trend reversal, then we could have locomotives followed by freight trains, coming full speed at various (dollar) shorts as well as (gold) longs in these markets.” [Read Nadler’s full commentary.]

In London bullion, the benchmark gold price was fixed earlier in the day to $1,036.50 an ounce, which was a decline of $17.50. Silver was at $17.060 an ounce for a 55 cent loss. Platinum was fixed $41.00 lower to $1,323.00 an ounce.

Visit sister site CoinNews here for more on this article, to include oil, stocks and precious metal commentary.

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