Gold Rises to All-Time High, Silver Surges – 11/03/2009

by Bullion Prices Staff on November 3, 2009

New York gold futures surged to a new all-time high Tuesday following news that the International Monetary Fund (IMF) sold 200 metric tons of gold to the Reserve Bank of India. Platinum rose as well, while silver soared to reach back above $17 an ounce.

New York Bullion prices follow:

  • Gold for December delivery jumped $30.90, or 2.9%, to $1,084.90 an ounce. The yellow metal ranged from $1,055.50 to $1,088.50.

  • Silver for December delivery surged 74 cents, or 4.5%, to $17.180 an ounce. It ranged from $16.245 to $17.35.

  • January platinum rose $18.10, or 1.4%, to $1,356.20 an ounce.

Notable bullion quotes of the day follow:

“There seems to be consensus among the central banks that it’s better to cut down on currency holdings and diversify into assets like gold, which has upside potential,” Krishna Reddy, a precious metal analyst at Way2Wealth Commodities Pvt. was quoted on Bloomberg.com. “The Reserve Bank of India gold purchase is a clear reflection of this belief.”

“The early morning hours brought a different set of conditions to the markets, inasmuch as the US dollar rose sharply on the trade-weighted index -gaining as much as 0.53 and touching the 76.75 level- but gold refused to give up,” wrote Jon Nadler, senior analyst at Kitco Metals, Inc. The offset factor? News that the IMF managed to find a buyer for about half of the 403 tonnes of gold it needs to sell in order to meet funding shortfalls.”

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,061.00 an ounce, which was a loss of $1.00 from Monday’s PM price. Silver was set back 23 cents to $16.350 an ounce. Platinum was fixed $5.00 lower to $1,325.00 an ounce.

New York crude-oil for December delivery climbed 93 cents, or 1.2 percent to $79.06 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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