Gold Retreats to Touch 2-Week Low, Silver Plunges – 10/26/2009

by Bullion Prices Staff on October 26, 2009

New York gold futures on Monday retreated to touch a price low that had not been seen in more than two-weeks. The yellow metal was pushed down by a rebounding US dollar, which led to the negative direction of commodities in general. Oil futures tumbled $1.82 to $78.68 a barrel. Gold tends to follow oil and move opposite to the U.S. dollar.

Silver and platinum retreated as well, as the following New York figures show:

  • Silver for December delivery fell 62.8 cents, or 3.5 percent, to $17.095 an ounce. It ranged from $17.01 to $17.80.

  • Gold for December delivery declined $13.60, or 1.3 percent, to $1,042.80 an ounce. The yellow metal ranged from $1,060.80 to $1,038.20, which was the lowest level since Oct. 7.

  • January platinum dropped $23.70, or 1.7 percent, to $1,345.80 an ounce.

The most notable bullion quotes of the day follow:

"A lot of people are looking at the performance of the dollar," Afshin Nabavi, a senior vice president at bullion refiner MKS Finance SA in Geneva, was quoted on Bloomberg. "Traders are likely to buy on dips."

"While gold and platinum both have favorable fundamentals, markets are waiting for a catalyst to push prices higher," analysts at Credit Suisse were quoted on MarketWatch. "A new bout of U.S. dollar weakness could provide such an impulse."

In London bullion, the benchmark gold price was fixed earlier in the day to $1,054.00 an ounce, which was a decline of $7.75. Silver was at $17.610 an ounce for a 4 cent decline. Platinum was fixed $8.00 lower to $1,364.00 an ounce.

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