Gold Falls, Silver and Platinum Rise – 1/7/2010

by Bullion Prices Staff on January 7, 2010

New York gold futures fell on Thursday for the first time this year as the US dollar rallied and oil broke away from a ten-day winning streak. The yellow metal declined 0.2%. Gold often follows oil and moves in the opposite direction of the greenback. In other metals, silver and platinum advanced with respective gains of 0.9% and 0.1%. New York precious metal figures follow:

  • Gold for February delivery declined $2.80 to $1,133.70 an ounce. It ranged from $1,139.50 to $1,128.70.

  • Silver for March delivery advanced 17 cents to close at $18.345 an ounce. It ranged from $18.055 to $18.420.

  • April platinum rose $1.00 to end at $1,559.40 an ounce. It ranged from $1,543.30 to $1,569.90.

In PM London bullion, the benchmark gold price was fixed to $1,130.25 an ounce, which was an increase of 25 cents from Wednesday. Silver rose 20 cents to $18.090 an ounce. Platinum was settled at $1,548.00 an ounce, for a loss of $8.00.

Notable bullion quotes follow:

"The small dollar rally and recent run-up made new buyers reluctant to pay higher prices," George Gero, a precious-metals trader for RBC Capital Markets, said on MarketWatch. "There is also profit-taking as we approach tomorrow’s jobs report."

"Gold is down as a caution ahead of the employment numbers, which could boost the dollar," Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said on Bloomberg. "Interest rates can only go higher from here."

"The dollar received a boost of energy overnight as several external factors conspired to bring buyers back to its camp and lift it to near 78 on the trade-weighted index once again," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

The first agent to move the US currency was the news that China took a bit of an unexpected step and proceeded to curb lending. The country’s leader, Mr. Wen, had stated on December 27 that the feverish growth in local lending had caused property prices to rise ‘too quickly’ (read: bubble-like), and that inflationary pressures were being caused by surging commodity prices."

New York crude-oil for February delivery lost 52 cents, or 0.6 percent, to $82.66 a barrel.

For US Mint news for the day, read US Coin Demand Picks Up Slightly.

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