Gold Falls with Dollar Gain – 12/8/2009

by Bullion Prices Staff on December 8, 2009

New York gold futures on Tuesday retreated for a third day as the dollar strengthened, hitting a one-month high against the euro. Silver and platinum prices fell as well, marking respective losses of 3.0% and 0.3%. New York precious metal figures follow:

  • Silver for March delivery plunged 55.3 cents, to $17.807 an ounce. It ranged from $17.610 to $17.56.

  • Gold for February delivery lost $20.60, or 1.8%, to $1,143.40 an ounce. The yellow metal ranged from $1,170.20 to $1,125.30.

  • January platinum declined $4.20 to $1,440.40 an ounce. It ranged from $1,463.00 to $1,436.50.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,146.75 an ounce, which was an increase of $4.25 from Monday. Silver advanced 7 cents to $18.110 an ounce. Platinum was settled at $1,439.00 an ounce, gaining $9.00.

Bullion quotes of the day follow:

"The stronger dollar put gold back under pressure,” James Moore, an analyst at TheBullionDesk.com, was quoted on MarketWatch. But "expectations of record low U.S. interest rates will likely limit substantial weakness in gold."

"What happens to gold from here will be determined by two factors — whether we see a continued recovery in the dollar, and whether the recent concerns over the creditworthiness of the major sovereign countries continue to subside," Nic Brown, senior analyst at Natixis, was quoted on Reuters.

"Bullion prices opened Tuesday’s session under renewed selling pressure, held back by a gain in the US dollar on the trade-weighted index and by a larger than $1 decline in crude oil values," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "No reason to buy gold? Far from it. However, do the slice and dice on the average level of central bank holdings (take the top 100 and run an average) and you will arrive at the same, reasonable, core 10% number which has been advocated by prudent advisors for years."

New York crude-oil for January delivery declined $1.31, or 1.8 percent, to $72.62 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.

In related bullion news, US Silver Eagles Passed 27M, with 1,012,500 sold in a single day when sales resumed in an allocated basis on Monday.

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