Gold Hits One-Month High as Dollar Falls – 1/11/2010

by Bullion Prices Staff on January 11, 2010

Gold surged to a one-month high in both New York and London on Monday as the US dollar turned lower. The greenback was pressured, according to reports, by a Fed official stating that interest rates would likely remain low in the US for the immediate future. Also cited for helping gold’s 1.1% rise was better than expected news about the Chinese economy. In other metals, silver climbed 1.2% and platinum rose 1.4%. More New York precious metal figures follow:

  • Gold for February delivery finished up $12.50 to $1,151.40 an ounce. It ranged from $1,139.00 to $1,163.00.
  • Silver for March delivery advanced 22.5 cents to close at $18.695 an ounce. It ranged from $18.495 to $18.925.
  • April platinum jumped $21.90 to end at $1,592.50 an ounce. It ranged from $1,567.20 to $1,596.30.

In PM London bullion, the benchmark gold price was fixed to $1,153.00 an ounce, which was an increase of $26.25 from Friday. Silver soared 72 cents to $18.840 an ounce. Platinum was settled at $1,593.00 an ounce, gaining $24.00.

Notable bullion quotes follow:

"The positive economic news out of China following the poor U.S. jobs number on Friday led to a surge in the oil and commodity prices and a fall in the dollar, and this led to gold’s strength," analysts at GoldCore said in a note that was cited on MarketWatch.

"Interest from investors has certainly been coming as a result of a declining dollar," Toby Hassall, a CWA Global Markets Pty commodity analyst in Sydney, said on Bloomberg.

"Gold prices lifted off at warp speed in the first moments of overnight trading on Sunday, following news that China went on a commodities shopping spree in December," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "Watch for the attempts towards the $1170 level, ($1174 remains a bit of a…grail) as well as for potential emergence of profit-taking around $1162 or higher."

New York crude-oil for February delivery fell 23 cents, or 0.3%, to $82.52 a barrel. Warmer weather forecasts were commonly cited as the major reason for oil’s decline, as demand would expectantly retreat for heating fuel. 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 gold bullion news from Australia, The Perth Mint on Monday announced an exclusive North American wholesaler for Kangaroo Minted Gold Bars.

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