Gold Falls from Six-Week High – March 4, 2010

by Bullion Prices Staff on March 4, 2010

US gold fell from a six-week high on Thursday as the dollar gained ground against other world currencies, and by as much as 1.1% against the euro. Gold generally losses its appeal with a rallying greenback. Precious metals were mixed on the day, however, with gold and silver both declining 0.9% while platinum eked out a slight 10 cent gain.

In New York precious metal prices, April gold fell $10.20 to $1,133.10 an ounce. The yellow metal ranged from $1,125.90 to $1,142.30. May silver declined 15.3 cents to end at $17.176 an ounce. April platinum edged higher to $1,583.60 an ounce.

"The dollar is only going to get stronger and stronger," Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois, said on Bloomberg. "Everybody is beginning to realize that the ECB is cooked because the Greek problem is not going to go away. Investors will go back to the dollar, and gold goes lower."

In PM London bullion prices, gold was fixed to $1,134.50 an ounce, declining $2.00. Silver advanced 17 cents to $17.340 an ounce. Platinum was settled at $1,579.00 an ounce, or $1.00 lower.

"The metal still has to overcome resistance around $1,146 and $1,162 and is still vulnerable to E.U. – and euro- elated pressure, particularly as the threat of a ratings downgrade for Greece remains," analysts at TheBullionDesk.com were cited on MarketWatch.

Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. (New York crude oil for April delivery declined 66 cents to $80.21 a barrel.) A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

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