Gold Ends Slightly Higher, Other Metals Rise – March 11, 2010

by Bullion Prices Staff on March 11, 2010

New York gold futures advanced slightly on Thursday while silver and platinum enjoyed stronger gains. In New York precious metals prices, April gold climbed a dime to $1,108.20 an ounce. The yellow metal ranged from $1,111.70 to $1,100.50 — a two-week low. May silver rose 14.2 cents, or 0.8%, to $17.160 an ounce. April platinum advanced $22.50, or 1.4%, to $1,612.70 an ounce.

"Demand is certainly visible in the $1,101-$1,105 range and that is probably helping the metal from an immediate crash," Pradeep Unni, an analyst at Richcomm Global Services in Dubai, said in a report cited on Bloomberg. "Investment demand is clearly on a slippery note."

In PM London bullion, the benchmark gold price was fixed earlier in the North American day to $1,104.00 an ounce, which was a decline of $16.50 from the price on Wednesday. Silver lost 56 cents to $16.910 an ounce. Platinum was settled at $1,580.00 an ounce, falling $25.00.

"Gold prices stabilized somewhat in the overnight markets after having fallen to their weakest level in over two weeks yesterday. The unwinding of speculative positions that followed the metal’s inability to keep pushing higher engendered technically-induced stop-loss selling and brought bullion down to very near the $1100 level that we had been assured we will not see again this season," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

"Whilst no single factor was identified as the catalyst for the sharp slide, several analysts opined that the recent Chinese statements regarding the country’s unwillingness to please the perma-bulls by loading up on massive gold tonnage for its reserves may have certainly played a significant role in the waning of bullish sentiment in the market."

New York crude oil for April delivery rose 2 cents to $82.11 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.

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