Gold Jumps to New Record Above $1,200/oz; Silver Tops $19/oz – 12/01/2009

by Bullion Prices Staff on December 2, 2009

Precious metals were on fire Tuesday as a weak US dollar helped drive commodity prices higher. Gold hit a new all-time record and silver registered a more than 16-month high. New York precious metal prices follow:

  • Silver for March delivery soared 68.5 cents, or 3.7 percent, to $19.210 an ounce. It ranged from $18.420 to $19.300 – the highest price since
    July 2008.

  • Gold for February delivery jumped $17.90, or 1.5 percent, to $1,200.20 an ounce. It ranged from $1,176.40 to $1,204.00 — the new all-time high.

  • January platinum surged $26.40, or 1.8 percent, to $1,486.60 an ounce. It ranged from $1,454.10 to $1,494.80.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,192.50 an ounce, which was an increase of $16.75 from Monday. Silver rose 58 cents to $18.720 an ounce. Platinum was settled at $1,470.00 an ounce, for a gain of $28.00.

Notable bullion quotes of the day follow:

"The familiar formula of a weaker dollar, high volume, and higher equities still brings new buyers every day," George Gero, a precious-metals trader for RBC Capital Markets, was quoted on MarketWatch.

"There is investment demand for gold from everywhere," Frank Lesh, a trader at FuturePath Trading LLC in Chicago, was quoted on Bloomberg. "The dollar has pushed gold to new highs. Gold is in an uptrend, and there is no sign that the trend will stop."

"Take a poll on what’s next, and talk immediately centers on the next $100-$150 higher target in gold. It should be an “easy achievement,” we are told," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

"However, just as quickly, and in the same breath, a conditional link is made with the fate of the US dollar. In other words, the most optimistic of gold bulls recognize that when the dollar turns, it will be a notable game-changer."

New York crude-oil for January delivery jumped $1.09, or 1.4 percent, to $78.37 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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