Gold Jumps 2%, Silver Surges 2.9% – 2/1/2010

by Bullion Prices Staff on February 1, 2010

New York gold futures jumped on Monday as the US dollar fell after reports were released showing better than expected manufacturing data and a rise in consumer spending for December. New York precious metal prices follow:

  • Gold for April delivery surged $21.20, or 2.0%, to end at $1,105.00 an ounce. It ranged from $1,077.20 to 1,107.90.

  • Silver for March delivery soared 47 cents, or 2.9%, to close to $16.660 an ounce. It ranged from $16.105 to $16.650.

  • Platinum for April delivery rose $33.30, or 2.2%, to finish at $1,539.30 an ounce. It ranged from $1,502.50 to $1,552.00.

In London bullion prices, the benchmark gold price was fixed (PM) to $1,086.50 an ounce, which was an increase of $8.00 from Friday. Silver fell 6 cents to $16.230 an ounce. Platinum was settled at $1,520.00 an ounce for a gain of $8.00.

Notable bullion quotes follow:

"The dollar is losing its mojo today," Matt Zeman, a metals trader at LaSalle Futures Group in Chicago, said on Bloomberg. "The gold bulls are coming back after last month’s bloodshed."

"When you see strong industrial data, that is particularly positive for platinum and palladium due to their industrial characteristics," Bill O’Neill, partner at LOGIC Advisors, said on Reuters.

"Questions surrounding the yellow metals’ price prospects continue to surface, now that the ebb of physical demand in seasonal terms is nearly here, and given the continued outflows from exchange-traded vehicles," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "The metal needs to rise to above the $1,117 mark to get the bulls excited again."

New York crude-oil for March delivery surged $1.54 or 2.1% to end at $74.43 a barrel. 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.

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