Gold Prices Decline from Record, Silver Retreats – 11/12/2009

by Bullion Prices Staff on November 12, 2009

Gold fell Thursday for the first time in November as the dollar surged to pull out of its 15-month low. The yellow metal declined 0.7% after it had reached a new all-time high of $1,123.40 an ounce in early morning trading. Platinum and silver also declined. New York bullion prices follow:

  • Gold for December delivery slid $8.00 to $1,106.60 an ounce. Its intraday low was $1,103.70.

  • Silver for December delivery fell 27.2 cents, or 1.6%, to $17.265 an ounce. It ranged from $17.350 to $17.780.

  • January platinum declined $6.40, or 0.5%, to $1,363.20 an ounce.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,114.75 an ounce, which was a decline of 50 cents from the day prior. Silver retreated 12 cents to $17.510 an ounce. Platinum remained unchanged at $1,365.00 an ounce.

Notable precious metal quotes of the day follow:

"The U.S. dollar regained some strength and quelled that rally, but still the bull is on the run," Miguel Perez- Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said in a report that was cited on Bloomberg.com.

"We see continuous inflows from financial investors almost on a daily basis, real interest rates are still lower and the dollar is weakening, so the three pillars of this gold rally are still in place," Peter Buchanan, commodities analyst at CIBC, said on Reuters.

After gold hit fresh highs early, the rest of the "Thursday session was spent concentrating on additional profit-taking, as the euphoria that carried bullion briefly to a new record high quickly dissipated with additional speed following a more robust climb by the US dollar," wrote Jon Nadler, senior analyst at Kitco Metals, Inc."

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 related gold news, the US Mint raised gold coin prices on Thursday as a result of the higher gold prices. The Mint uses a weekly London Fix average, which came in at exactly the level — within one penny — to trigger the increases.

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