Gold Recaptures $1,100 / oz – March 23, 2010

by Bullion Prices Staff on March 23, 2010

US gold ended higher on Tuesday and recovered the $1,100 an ounce level after the euro moved up and the dollar pared gains. The yellow metal climbed 0.4% on the day. Silver and platinum followed with respective gains of 0.5% and 0.4%.

In additional New York precious metal price details, April gold futures ended up $4.20 to close to $1,103.70 an ounce. It ranged from $1,094.00 to $1,108.50. May silver finished 9.2 cents higher to $17.027 an ounce. April platinum advanced $7.20 to $1,608.50 an ounce.

"The markets’ yo-yo action continued after the opening bell, and as the dollar slipped. Gold was able to recapture the $1100 level and traded several dollars above it." wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "Dealers we spoke to in New York attributed the mid-morning pop in values to poor US housing sales data which was seen as denting the dollar and thus helping bullion. At the end of the day (and not just this one) it’s all about the same trio: USD-EUR-AU."

In London bullion prices, the afternoon gold fix was $1,101.50 an ounce for an increase of $4.25. Silver was unchanged at $16.780 an ounce. Platinum settled up $16.00 to $1,598.00 an ounce.

"The dollar looks less attractive after the housing numbers," Matt Zeman, a metals trader at LaSalle Futures Group in Chicago, said on Bloomberg. "You’ve got the bargain hunters out to buy gold after the recent slide."

New York crude oil for May delivery advanced 31 cents, or 0.4 percent, to $81.91 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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