Gold Shifts Higher, Silver and Platinum Prices Edge Lower – 11/20/2009

by Bullion Prices Staff on November 20, 2009

Gold futures in New York moved higher Friday for the sixth consecutive trading day as the US dollar showed weakness. The yellow metal has now posted three weekly gains. Silver and platinum prices edged slightly lower, with both retreating 0.1%. New York precious metal prices follow:

  • Gold for December delivery rose $4.90, or 0.4%, to $1,146.80 an ounce. It ranged from $1,132.50 to $1,148.50.

  • Silver for December delivery declined 1.5 cents to $18.440 an ounce. It ranged from $18.035 to $18.595.

  • January platinum retreated $2.00 to $1,441.90 an ounce. It ranged from $1,426.00 to $1,450.90.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,140.00 an ounce, which was an increase of $4.50 from Thursday. Silver fell 2 cents to $18.180 an ounce. Platinum prices remained unchanged at $1,435.00 an ounce.

In related platinum coin news today, the US Mint announced a Dec. 3 release date for its only 2009-dated platinum coin. For more, read Mint Offers Newly Designed 2009 Platinum Eagle.

Notable bullion quotes of the day follow:

"Inflation worries and recession worries bring gold buyers as low interest rates make it a good alternative to short term fixed income," George Gero, a precious-metals trader for RBC Capital Markets, said on MarketWatch. "Longer term holders are evident" with investors purchasing more contracts for delivery in future months.

"People are still buying gold because they think the dollar hasn’t been broken yet," Marty McNeill, a trader at R.F. Lafferty Inc. in New York, said on Bloomberg. "If the dollar rallies, it’s an excuse to sell for profit. Any dip in prices is a buying opportunity."

New York crude-oil for December delivery declined for a second day, falling 74 cents, or 1%, to $76.72 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.

Finally, what is driving gold prices higher? MarketWatch offers furhter insights in the following video. Frank Holmes, CEO of U.S. Global Investors, tells MarketWatch’s Laura Mandaro that it’s possible for gold to top $2,300 an ounce.

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