Gold Prices Hit New Record Above $1,189 – 11/25/2009

by Bullion Prices Staff on November 25, 2009

Precious metal prices jumped on Wednesday as the dollar slumped. Gold was also spurred forward to a new record by reports that India’s central bank may purchase more gold from the International Monetary Fund. New York precious prices follow:

  • Gold for December delivery jumped $21.20, or 1.8 percent, to $1,187.00 an ounce. It ranged from $1,166.80 to $1,189.40.

  • Silver for December delivery soared 31.3 cents, or 1.7 percent, to $18.768 an ounce. It ranged from $18.520 to $18.800.

  • January platinum climbed $35.70, or 2.5 percent, to $1,479.50 an ounce. It ranged from $1,445.50 to $1,482.00.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,179.75 an ounce, which was an increase of $16.50 from Tuesday. Silver rose 6 cents to $18.630 an ounce. Platinum was settled at $1,469.00 an ounce, for a gain of $11.00.

Notable bullion quotes of the day follow:

"There is a lot of central-bank buying, hedge-fund buying and gold is obviously getting to $1,200 an ounce before the end of the year," David Lee, a trader at Heraeus Precious Metals Management in New York, told Bloomberg in a telephone interview.

For years, many central banks were net sellers of gold. "The fact that they’ve changed in sentiment, instead of selling gold are buying gold, has provided a huge lift to gold prices," Suki Cooper, a precious metals analyst for Barclays Capital, said on MarketWatch.

"Risk appetite grew on the heels of reports that India may decide to raise its gold allocation to 8% by possibly purchasing the remainder of the gold that the IMF has made available in its quest for cash," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "

New York crude-oil for January delivery surged $1.94, or 2.6 percent, to $77.97 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.

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: