Gold, Metals Rally for Second Straight Day – April 1, 2010

by Bullion Prices Staff on April 1, 2010

Precious metals rallied for a second day on Thursday and on the heels of a positive first quarter which saw gold rise 1.7%. Stronger physical demand, higher oil prices, fund buying, a weaker greenback and increased risk appetite were cited factors in driving the yellow metal to a two-week high during the opening day of April.

In New York precious metal prices, June gold rose $11.60, or 1.0%, to $1,126.10 an ounce. It ranged from $1,112.30 to $1,129.10, the highest level since March 18. May silver climbed 34.6 cents, or 2.1%, to $17.890 an ounce. It ranged from $17.475 to $18.000, the highest level since January 21. July platinum advanced $28.70, or 1.7%, to $1,675.60 an ounce.

"Fresh fund buying to start the new month and new quarter was featured Thursday," wrote Jim Wyckoff of Kitco News."A lower U.S. dollar index and higher crude oil prices again supported buying interest in the precious metals Thursday. Gold also continues to see good physical demand, especially from China."

In London bullion prices, the afternoon gold fix was $1,123.50 an ounce for a gain of $8.00. Silver was $17.690 an ounce, or 19 cents higher. Platinum settled at $1,660.00 an ounce for an increase of $15.00.

Gold is "benefiting from the beginning of the quarter with new fund money and fresh buying coming in," Jesper Dannesboe, senior commodity strategist at Societe Generale, said on Reuters. "Also increasing is the number of investors and speculators thinking that ‘the base metals are going higher so maybe there’s some upside in gold’."

New York crude oil for May delivery gained $1.11 to $84.87 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.

In related bullion news, bullion American Silver Eagle coins rallied during the start and toward the end of March, marking the best ever US Mint quarterly Silver Eagle sales. 9,023,500 eagles were purchased by United States Mint authorized buyers during the quarter.

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