Gold Rises from Seven-Week Low as Dollar Retreats – 12/23/2009

by Bullion Prices Staff on December 23, 2009

New York gold futures climbed 0.7% on Wednesday as the US dollar stumbled following a report of lower than expected new home sales — down 11.3% in November, according to the Commerce Department. Crude oil surged to above $76 a barrel, which was also supported gold’s rise. The yellow metal tends to follow oil and move opposite of the greenback. Silver and platinum advanced as well, gaining 0.7% and 2.1%, respectively.

New York precious metal figures follow:

  • Gold for February delivery rose $7.30 to $1,094.00 an ounce. It ranged from $1,080.10 to $1,096.80.

  • Silver for March delivery climbed 16 cents to close at $17.190 an ounce. It ranged from $16.870 to $17.245.

  • January platinum jumped $29.90 to end at $1,426.80 an ounce. It ranged from $1,390.00 to $1,428.10.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,085.25 an ounce, which was an increase of $1.25 from Tuesday. Silver fell 3 cents to $16.920 an ounce. Platinum was settled at $1,399.00 an ounce, falling $11.00.

Bullion comments for the day follow:

"Gold prices steadied a bit overnight as mild bargain hunting emerged on the back of the renewed decline," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "The current correction, however, could drag prices to levels anywhere between $1,030 and $1,060 if selling patterns re-emerge."

"The gold moves are all related to the dollar," Lannie Cohen, the president of Capitol Commodity Services Inc. in Indianapolis, said on Bloomberg. "The dollar had been strong for a few weeks now, putting a cap on prices. If this is the end of that rally, then gold will start to move higher again."

"Book closing and weak physical demand, combined with the selling pressure building up in charts are restricting fresh investments," Pradeep Unni, senior analyst at Richcomm Global Services, said on Reuters. "A year-end price closing in the range of $1,050-1,055 is quite likely."

New York crude-oil for February delivery soared $2.27, or 3.1 percent, to $76.67 a barrel.

In other bullion news, the United States Mint told its authorized purchasers that it would begin selling Eagle bullion coins on Jan. 19. For coin collectors, the US Mint also unveiled 2010 First Spouse Gold designs. The .9999 fine gold coins are struck in proof and uncirculated conditions, and will be released on the same schedule as the Presidential $1 Coins honoring former Presidents.

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