Gold Falls to $1,0090/oz as Dollar Rises – Feb 12, 2010

by Bullion Prices Staff on February 12, 2010

New York gold futures fell nearly $5 on Friday after the US dollar gained strength on news that China tightened lending yet again. Worries over Greece debt continued to be cited as well in propping the greenback, as the euro was pressured lower. Gold generally declines when the dollar rises. New York precious metal prices follow:

  • April gold fell $4.70, or 0.4%, to $1,090.00 an ounce. It ranged from $1,078.10 to $1,097.70.

  • March silver declined 14.3 cents, or 0.9%, to to close at $15.447 an ounce. It ranged from $15.210 to $15.740.

  • April platinum retreated $8.20, or 0.5%, to end at $1,511.10 an ounce. It ranged from $1,489.50 to $1,531.00.

In PM London bullion, the benchmark gold price was fixed to $1,082.00 an ounce, which was an increase of $5.75 from Thursday. Silver fell 4 cents to $15.330 an ounce. Platinum was settled $6.00 lower to $1,505.00.

"Gold is reacting to liquidity constraints implemented by the People’s Bank of China and a further strengthening of the dollar," Bayram Dincer, a commodity analyst at LGT Capital Management in Pfaeffikon, Switzerland, said on Bloomberg.

New York crude-oil for March delivery ended down $1.15, or 1.5%, to $74.13 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.

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: