Gold, Platinum and Silver Prices Decline – 12/9/2009

by Bullion Prices Staff on December 9, 2009

Precious metal prices moved lower yet again on Wednesday, as gold retreated after the US dollar firmed later in the day. Oil plunged 2.7 percent. Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite of the dollar. The yellow metal has now fallen for four straight days, losing almost $100 in the process. New York precious metal figures follow:

  • Gold for February delivery declined $22.50, or 2.0 percent, to $1,120.90 an ounce. It ranged from $1,148.40 and $1,118.10.

  • Silver for March delivery plunged another 62.7 cents, or 3.5 percent, to $17.180 an ounce. It ranged from $17.910 to $17.170.

  • January platinum ended down $31.20, or 2.2 percent, to $1,409.20 an ounce. It ranged from $1,439.70 to $1,407.60.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,141.00 an ounce, which was a decline of $5.75 from Tuesday. Silver retreated 34 cents to $17.770 an ounce. Platinum was settled at $1,422.00 an ounce, falling $17.00.

Notable bullion quotes follow:

"I don’t think we will see a sustained rally in gold until there is more clarity on the direction of the dollar," Brian Kelly, chief executive of Kanundrum Research, a commodities and macroeconomic research firm, said on MarketWatch.

"The dollar is still the excuse," Bernard Sin, the head of currency and metals trading at bullion-refiner MKS Finance SA in Geneva, said on Bloomberg. "We have fallen quite drastically. We might see bargain hunters coming into the market."

"It has become most ‘fashionable’ to provide very nice little explanations as to how it was in fact, so-called "speculative excesses" that drove gold to levels above $1,200 per ounce [last week]," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "Were you to ask some of the same sources about the state of affairs, say, one week ago, no such "insight" (now, hindsight) would have been detectable."

New York crude-oil for January delivery fell $1.95 to $70.67 a barrel.

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