Gold Gains 0.3%, Closes Near $1200; Silver Falls 1.2% – May 25, 2010

by Bullion Prices Staff on May 25, 2010

U.S. gold prices rose slightly on Tuesday thanks in large part to haven demand, according to analysts. Gold has now climbed for a second straight day after having plunged the four previous.

"Credit spreads in European Union nations are again widening and the Euro currency was under strong selling pressure again Tuesday," noted Jim Wyckoff of Kitco News. "There are increasing concerns the EU’s debt crisis will spread from Greece to Portugal and Spain, and possibly turn into a worldwide contagion that could sink the world’s major economies. Traders have been buying gold with European currencies as a hedge against further weakness of the European currencies."

In New York precious metals prices, June gold closed to $1,198.00 an ounce, rising $4.00 or 0.3%. The yellow metal reached a low of $1,185.20 and high of $1,200.40.

"Gold is being bought because of the level of international fear out there," Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois, was quoted on Bloomberg. "Europe is buying because of the decline in the euro, and Asia is buying because they’re scared to death of North Korea."

July silver fell 21.9 cents, or 1.2%, to $17.781 an ounce. July platinum declined $42.60, or 2.8%, to $1,491.90 an ounce. June palladium ended down $23.15, or 5.1%, to $430.40 an ounce.

In London bullion prices, the afternoon gold fix was $1,198.25 an ounce for an increase of $11.25, or 0.9%. Silver was $17.630 an ounce for a loss of 15 cents, or 0.8%. Platinum was $1,493.00 an ounce, declining $32.00 or 2.1%. Palladium was $428.00 an ounce, down $22.00, or 4.9%.

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