U.S. gold on Wednesday pushed above $1150 an ounce to register a 2010 high. The yellow metal made its move higher in the face of a stronger greenback — again, and despite tumbling oil prices. Gold usually moves opposite to the dollar and along with the direction of crude. Its failure to do so was cited by more than one analysts as a positive short-term sign for the metal.
In New York precious metal prices, June gold rose $17.00, or 1.5%, to $1,153.00 an ounce. It ranged from $1,133.30 to $1,154.10. May silver closed up 26.8 cents, or 1.5%, to $18.199 an ounce. July platinum gained $18.70, or 1.1%, to $1,723.20 an ounce.
Gold rose "on fresh speculative buying interest and building upside technical momentum. Ongoing investor demand for physical gold is also underpinning this latest rally," wrote Jim Wyckoff of Kitco News. "The precious yellow metal was able to score solid gains Wednesday, despite a firmer U.S. dollar index. That is yet another bullish near-term clue for gold."
In London bullion prices, the afternoon gold fix was $1,142.00 an ounce, which was $9.25 or 0.8% higher. Silver was 5 cents, or 0.3%, higher at $17.970 an ounce. Platinum settled at $1,710.00 an ounce for an increase of $10.00, or 0.6%.
"The dollar is not the sole determinant of gold prices — it’s just a very influential one. This denotes strong underlying strength in the gold market, and it indicates that other factors in the market are very strong," James Steel, chief commodities analyst at HSBC, said on Reuters.
In a coin item of the day, the U.S. Mint this year will offer a new series of bullion coins in additional to the Silver Eagles that have been issued since 1986. One of them will be the Mount Hood America the Beautiful Silver Bullion Coin. Click on the link to learn about this silver coins and the new bullion series from the Mint.