Gold Prices Fall From Record, Silver Plunges – 11/27/2009

by Bullion Prices Staff on November 27, 2009

Gold’s nine day winning streak ended Friday as the US dollar rose as worries of debt default in Dubai surfaced following news of their efforts to delay billions in repayments for six months. Gold fell slightly more than 1%, while silver and platinum lost more than 2%. New York precious prices follow:

  • Gold for December delivery fell $12.80, or 1.1%, to $1,174.20 an ounce. It ranged from $1,130.10 to $1,195 — an all-time high.

  • Silver for December delivery plunged 46.6 cents, or 2.5%, to $18.302 an ounce. It ranged from $17.700 to $18.900.

  • January platinum lost $32.40, or 2.2%, to $1,447.10 an ounce. It ranged from $1,426.10 to $1,487.90.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,104.00 an ounce, which was a fall of $78.75 from Thursday. Silver declined 75 cents to $17.74 an ounce. Platinum was settled at $1,424.00 an ounce, for a loss of $31.00.

Notable bullion quotes of the day follow:

“The Dubai news is the first major negative news in the past two to three months for investors,” Chintan Karnani, analyst at Insignia Consultants in New Delhi, was quoted on MarketWatch. “This has resulted in an excuse for profit-taking.”

"The market is reacting to the news on Dubai," Bernard Sin, the head of currency and metals trading at bullion refiner MKS Finance SA in Geneva, said on Bloomberg. "A dollar bounce likely means gold will sell off. People are trying to take profit."

"The US dollar was still rising after midday in Europe on Thursday, driven both by fear of a debt default by Dubai World as well as talk of intervention by the Bank of Japan and suspected intervention by the Swiss National Bank," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

"At any rate, there was a sharp shift in global sentiment as news broke that Dubai World, a holding company for the Dubai government, had suddenly shocked financial markets with a request for a delay in repayment on about $35 billion of its debt."

New York crude-oil for January delivery fell $1.91, or 2.4 percent, to $76.05 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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