Gold Ends Lower with Firmer Dollar, Silver Declines – 10/30/2009

by Bullion Prices Staff on October 30, 2009

Precious metals and commodities in general retreated Friday with New York gold futures falling 0.6 percent as a firmer US dollar weighed in following news that consumer spending fell sharply in September. New York bullion prices follow:

  • Silver for December delivery lost most of Thursday’s gain with a fall of 40 cents, or 2.4 percent, to $16.255 an ounce. It ranged from $16.745 to $16.150.
  • Gold for December delivery declined $6.70 to $1,040.40 an ounce. The yellow metal ranged from $1,049.20 to $1,035.40.
  • January platinum retreated $11.90, or 0.9 percent, to $1,326.30 an ounce.

The most notable bullion quotes of the day follow:

“The gold price had become increasingly vulnerable to a pocket of U.S. dollar strength during October,” analysts at Deutsche Bank AG said today in a report that was cited on Bloomberg. “The latest correction in the gold price provides another opportunity to build long exposure.”

“Friday’s market sessions in precious metals started off on a tamer note, following the best gains in gold in three weeks,” wrote Jon Nadler, senior analyst at Kitco Metals, Inc. “The recapture of the $1045 area is noteworthy, although analysts we polled during the wee hours overseas are trying to define the move as everything from a ‘one-hit wonder’ to the ‘re-ignition of what we saw during most of October.’” [Read Nadler’s full commentary.]

In PM London bullion prices, the benchmark gold price was fixed earlier in the day to $1,040.00 an ounce, which was a lost of 50 cents from Thursday’s PM price. Silver advanced 24 cents to $16.570 an ounce. Platinum was fixed $8.00 lower to $1,320.00 an ounce.

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.

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