Gold Reaches New Record at $1,153, Silver Touches $18.85 – 11/18/2009

by Bullion Prices Staff on November 18, 2009

Precious metals were on fire for at least a portion of Wednesday as gold recorded a new all-time high with the help of a falling dollar and silver and platinum reached more than one year highs. Each later retreated, giving back some of their gains, with platinum actually ending lower on the day by $10.50. New York precious metal prices follow:

  • Gold for December delivery advanced $1.80 to $1,141.20 an ounce. It ranged from $1,136.00 to $1,153.40 — an all-time high.

  • Silver for December delivery finished up 2.8 cents, or 0.2 percent, to $18.415 an ounce. It ranged from $18.325 to $18.855 — the highest level since July 2008.

  • January platinum declined $10.50, or 0.7 percent, to $1,452.00 an ounce. It ranged from $1,442.50 to $1,471.70 — the highest since Sept. 2008

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,149.00 an ounce, which was a gain of $14.25 from Tuesday. Silver climbed 64 cents to $18.740 an ounce. Platinum was settled at $1,449.00 an ounce, for a $11.00 increase.

Notable bullion quotes of the day follow:

"People are buying gold to protect themselves from the decline in the dollar," Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago, was quoted on Bloomberg. "We’re going to see further devaluation in the dollar and there’s a desire for diversification into gold."

"Low inflation pressures are traditionally a negative for gold prices. If, however, weak inflation data are seen as allowing the Fed to continue to pursue easy monetary policies, this may be seen as supportive of gold," HSBC analyst James Steel said in a research brief that was cited on MarketWatch.

"Given the bullish tone in the rest of the complex and increasing investment demand, both metals [platinum, palladium] and are likely to test higher in the coming sessions with resistance above pegged at $1,490 and $400," James Moore, analyst was quoted on Reuters.

Gold’s 10-week spike is the result of "neither inflation nor geopolitical developments. The dollar-carry trade, as applied to the commodities sector, remains the suspect of choice," wrote Jon Nadler, senior analyst at Kitco Metals, Inc."

In related inflation news, the cost of living in the US rose more than expected in October, according to a Labor Department report released Wednesday. Consumer prices rose 0.3 percent and core inflation, which exclude volatile food and energy costs, climbed 0.2 percent. US inflation fell 0.2 percent over the past 12 months.

New York crude-oil for December delivery rose 44 cents, or 0.5 percent, to $79.58 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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