Gold Down for Day Three, but Silver Rises – February 24, 2010

by Bullion Prices Staff on February 24, 2010

Precious metals prices were mixed on Wednesday, with gold standing out with its consecutive three-day fall. The yellow metal dropped 0.5% as its inflation appeal was tarnished after Fed Chairman Ben Bernanke pledged to keep interest rates low into the foreseeable future.

In New York precious metals prices, April gold lost $6.00 to end at $1,097.20 an ounce. It ranged from $1,090.20 to $1,108.80. March silver rose 5.2 cents, or 0.3% to close at $15.940 an ounce. April platinum lost $3.00, or 0.2% to end at $1,507.30 an ounce.

"The selling has abated because of what Bernanke said. We remain more on the sidelines to see" which way the market will trade in the near-term, George Gero, vice president of global futures at RBC Capital Markets, said on MarketWatch.

In PM London bullion prices, gold fixed to $1,103.00 an ounce for a decline of $4.00. Silver lost 34 cents to $15.760 an ounce. Platinum settled at $1,504.00 an ounce, falling $14.00.

"The main driver for gold is as an inflation hedge," Jesper Dannesboe, a senior commodity strategist at Societe Generale SA in London, said on Bloomberg. "If people are worried about economic growth, then they are less worried about inflation."

New York crude-oil for April delivery gained $1.14, or 1.4% to end at $80 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.

In gold coin news, the United States Mint increased coin prices for collector gold products. The change was the result of the weekly London fix gold average staying above $1,100 an ounce. The coins and their adjusted prices follow:

  • 2009 American Buffalo Gold Coin moved from $1,360 to $1,410
  • Uncirculated First Spouse Coins went from $691 to $716
  • Proof First Spouse Coins increased from $704 to $729

Additionally, the latest US Mint sales report is available. For weekly figures for bullion and numismatic coins, read US Mint Sales: Presidential Dollar Proof Sets Lead.

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