Gold Climbs After Four Days of Losses, Silver Advances – 12/10/2009

by Bullion Prices Staff on December 10, 2009

New York gold futures on Thursday finally broke away from a four day losing streak in which prices fell by nearly $100, or 8%. Gold climbed higher as the dollar weakened, making the yellow metal more attractive to investors. New York precious metal figures follow:

  • Gold for February delivery climbed $5.30, or 0.5%, to $1,126.20 an ounce. It ranged from $1,121.80 and $1,137.70.

  • Silver for March delivery rose eight-tenths of a cent to $17.188 an ounce. It ranged from $17.170 to $17.575.

  • January platinum gained $15.30, or 1.1%, to $1,424.50 an ounce. It ranged from $1,414.00 to $1,432.60.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,128.50 an ounce, which was a decline of $12.50 from Wednesday. Silver retreated 38 cents to $17.390 an ounce. Platinum was settled at $1,416.00 an ounce, falling $6.00.

Notable bullion quotes follow:

"A lot of the momentum to the downside for gold is gone," Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois, said on Bloomberg. "The dollar isn’t doing much. You’re trading the dollar no matter what commodity you’re trading."

"There is bargain hunting going on," George Gero, a precious-metals trader for RBC Capital Markets, said on MarketWatch. "We are stable and up for now with the dollar weakening."

"The market continues to search for a comfortable range ahead of the inevitable slowdown in activity that will be precipitated by the nearing of the holiday period, now just two weeks away," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "As such, we cannot discount strong bouts of selling – or, surprise buying sprees for that matter, as participants either unwind still profitable positions or buy on more significant dips with the expectation that they can make a go of it again in January."

New York crude-oil for January delivery lost 13 cents, or 0.2%, to $70.54 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.

In related platinum news on Thursday, the numismatic platinum eagles reached reached their maximum mintage. The 99.95% pure platinum, one ounce coins were released on Dec. 3, and 8,000 moved within the week, which was more than were sold in all of 2008. For more information, read the coin news article: 2009 Proof Platinum Eagle Coins Sell Out.

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