Gold Rises for Third Time in Four Days – 1/13/2010

by Bullion Prices Staff on January 13, 2010

US gold turned higher in New York on Wednesday as the greenback fell against other world currencies. Reports cited a catalyst for the dollar’s decline were expectations that the Federal Reserve would keep interest rates low for some time. Gold generally moves in the opposite direction of the dollar. It has now risen for three of four days. New York bullion figures follow:

  • Gold for February delivery advanced $7.40, or 0.7%, to $1,136.80 an ounce. It ranged from $1,118.50 to $1,138.00.

  • Silver for March delivery rose 29.5 cents, or 1.6%, to finish at $18.550 an ounce. It ranged from $18.200 to $18.625.

  • April platinum declined $4.20, or 0.3%, to end at $1,574.40 an ounce. It ranged from $1,592.90 to $1,556.00.

In PM London bullion, the benchmark gold price was fixed to $1,127.25 an ounce, which was a decline $24.00 from Tuesday. Silver dropped 6 cents to $18.350 an ounce. Platinum was settled at $1,577.00 an ounce for a gain of $1.00.

Notable bullion quotes follow:

"This morning and last night, there were quite a few physical buyers bargain-hunting around in the marketplace, and we saw some good demand out of India and elsewhere," Afshin Nabavi, head of trading at MKS Finance, said on Reuters.

"With the dollar back on the slide, there is more interest," he added.

"If the Fed foolishly keeps interest rates too low for too long, money is going to flow into gold and commodities," Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois, said on Bloomberg.

"Following their worst drop in three weeks on Tuesday, gold prices staged an overnight recovery as additional dollar weakness prompted some bargain hunting in the overseas markets," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "A recapture of price levels above $1142 is essential for gold at this time, before any attempts towards the high $1160s or the $1174 grail can be aimed for."

New York crude-oil for February delivery dropped $1.14, or 1.4%, to $79.65 a barrel after a government report showed higher than expected inventories. Gold typically follow oils (and moves opposite of the U.S. dollar as mentioned). The yellow metal certainly was not following crude on Wednesday.

In other bullion news of the day, the latest US Mint figures show rising bullion eagles sales. The US Mint also recently announcement the sell out of 2009-dated Silver Eagles. Final sales of these coins jumped 367,500 in January, adding to the record-breaking 28,766,500 purchased in 2009. Bullion Gold Eagles also improved, picking up 18,000 versus the prior weekly gain of only 2,000. The 2010-dated bullion gold and silver coins are expected to launch on Jan. 19.

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