Gold Gains for a Fourth Day Despite Dollar Rise – March 18, 2010

by Bullion Prices Staff on March 18, 2010

US gold rose on Thursday, marking a fourth straight day of gains despite a higher US dollar. The yellow metal edged up 0.3%. Silver and platinum broke ranks to register respective declines of 0.6% and 0.3%.

In new New York precious metal prices, April gold climbed $3.30 to end at $1,127.50 an ounce. It ranged from $1,118.20 to $1,128.50. May silver fell 10.1 cents to $17.422 an ounce. April platinum retreated $4.60 to close at $1,631.00 an ounce.

"Today, you have the U.S. dollar strengthening against other currencies, including the euro," which is usually bearish for gold, Anne-Laure Tremblay, a precious metals analyst with BNP Paribas in London, said on MarketWatch. But "we may see greater interest in gold motivated by its ‘safe haven’ appeal," as a result of fiscal issues in Greece, Tremblay added.

In PM London bullion prices, gold was fixed to $1,122.75 an ounce for a gain of $1.00. Silver fell 5 cents to $17.490 an ounce. Platinum ended down $3.00 to $1,633.00 an ounce.

"Gold did end higher today despite the weak euro/dollar, and that is a very bullish indicator. With worries about sovereign debt, there is still a safe haven to the gold," Mihir Dange, a COMEX gold floor trader in New York, said on Reuters.

In other economics new, consumer prices were flat in February while the annual inflation rate climbed 2.1%, according to the Labor Department. 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 ended down 73 cents, or 0.9 percent, to $82.20 a barrel.) A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

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