Gold Nears $1,120/oz, Silver Rises Above $16/oz – Feb 16, 2010

by Bullion Prices Staff on February 16, 2010

Precious metals jumped in New York on Tuesday after the dollar declined against major world currencies and following an extended U.S. holiday weekend. Greece was again in the news with its debt crisis, but investors’ nerves over the crisis appear to have settled somewhat, according to various reports. As an indication, the euro recovered against the greenback. When the dollar falls, gold generally rises. New York bullion prices follow:

  • April gold rallied $29.80, or 2.7%, to $1,119.80 an ounce. It was the biggest percentage gain for gold since November 3, 2009. The yellow metal ranged from $1,092.00 to $1,121.90.

  • March silver jumped 70.1 cents, or 4.5%, to close at $16.1480 an ounce. It ranged from $15.450 to $16.215.

  • April platinum gained $26.60, or 1.8%, to end at $1,537.70 an ounce. It ranged from $1,509.10 to $1,544.00.

In PM London bullion, the benchmark gold price was fixed earlier in the North American day to $1,115.25 an ounce, which was an increase of $17.00 from Monday. Silver rose 25 cents to $15.820 an ounce. Platinum was settled at $1,534.00 an ounce, rising $21.00.

Notable bullion quotes follow:

"Commodity prices are firming as the dollar weakens," Dennis Gartman, a Suffolk, Virginia-based economist and hedge- fund manager, said in his Gartman Letter today that was noted on Bloomberg. "The world has become disdainful of currencies generally, and is wrapping its collective arms around gold as the most readily available, reservable and believable currency."

"The metal is vulnerable to a euro-related pullback and now needs to clear resistance around $1,125 to cement more bullish sentiment," James Moore, analyst at TheBullionDesk.com, wrote in a note to clients that was cited on MarketWatch.

"The advance in gold came with a corresponding decline in the US dollar (recall that gold and the dollar have experienced a short-term de-couple over the past several trading sessions). Also aiding bullion’s gains were the declines in weak long spec positions that the market has witnessed in recent days," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "The majority of gold’s overnight gains can, however, be attributed to the rising tide of short positions being put into place against the euro."

New York crude-oil for March delivery jumped $2.88, or 3.9 percent, to finish at $77.01 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.

In bullion and numismatic coin news of the day, Bullion Exchange International Brings Silver and Gold, the United States Mint set 2010 Commemorative Coin Prices, and the Royal Canadian Mint issues Year of the Tiger in 2010 Gold and Silver Coins.

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