Gold Gains, Silver and Other Metals Fall – April 27

by Bullion Prices Staff on April 27, 2010

U.S. gold prices hit a multi-week high on Tuesday — in spite of a stronger dollar and falling oil prices — as safe-haven buying emerged after concerns over Greece’s and Portugal’s debt increased when Standard & Poor’s cut their credit ranking. Other metals fell, registering losses between 1.2% and 3.1%.

"Comex gold futures closed higher, nearer the session high and hit a fresh three-week high Tuesday as traders sought out gold as a safe-haven purchase and did some bargain-hunting buying at lower price levels seen in earlier trading," wrote Jim Wyckoff of Kitco News.

"The gold market bulls put in an impressive performance by pushing prices higher despite a stronger U.S. dollar index and solidly lower crude oil futures prices."

In New York metals prices, June gold rose $8.20, or 0.7%, to $1,162.20 an ounce. It ended toward the session high of $1,165.30, which was the highest price since April 12. May silver lost 21.8 cents, or 1.2%, to close at $18.119 an ounce. July platinum fell $24.10, or 1.4%, to end at $1,720.90 an ounce. June palladium declined $17.45, or 3.1%, to $548.95 an ounce.

"Gold seems to be defying the traditional pattern — stronger dollar, lower gold prices — over the last weeks, pointing to stronger perception of gold as an alternative currency," Commerzbank analyst Eugen Weinberg, said on Reuters.

In London bullion prices, the afternoon gold fix was $1,149.50 an ounce for a loss of $5.00, or 0.4%. Silver was $18.160 an ounce, falling 19 cents, or 1.0%. Platinum moved to $1,722.00 an ounce, declining $30.00, or 1.7%. Palladium declined to $550.00 an ounce, losing $21.00, or 3.7%.

"Clearly, gold is making a unilateral move here," Michael Guido, the director of hedge-fund sales at Macquarie Bank Ltd. in New York, said on Bloomberg. "Gold is breaking away from its negative correlation with the dollar and becoming a haven trade."

In a coin item of the day, the U.S. Mint will begin to sell 2010-dated American Buffalo coins to its network of authorized purchasers on Thursday. For details, check out: 2010 Buffalo Gold Bullion Coins Available April 29.

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