Gold, Silver Continue Lower – 10/28/2009

by Bullion Prices Staff on October 28, 2009

Gold finished down Wednesday to mark a fifth straight day of losses. A stronger US dollar was the cited reason for the yellow metal’s decline. Silver and platinum also fell. New York precious metals figures follow:

  • Silver for December delivery fell 30 cents, or 1.8 percent, to $16.240 an ounce. It ranged from $16.155 to $16.77.
  • Gold for December delivery declined $4.90, or 0.5 percent, to $1,030.50 an ounce. The yellow metal ranged from $1,042.60 to $1,027.10, which is the lowest price since Oct. 6.
  • January platinum ended down $12.10, or 0.9 percent, to $1,306.90 an ounce.

The most notable bullion quotes of the day follow:

“It’s all very much dollar-driven,” Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois, was quoted on Bloomberg. “You’re seeing a direct correlation between the dollar and gold.”

“Gold is behaving in textbook fashion,” Calyon metals analyst Robin Bhar told Reuters. “All the long-standing bull factors for gold — inflation, dollar weakness, unhappiness with the monetary system as it stands and what governments are doing to their paper currencies — are still there. The up trend remains intact.”

“Gold prices dipped to under the $1030 level ahead of the opening of the NY midweek session, as falling oil, a rising dollar, and the aforementioned drops in various equity markets added to the ranks of those who decided to call it quits for now,” wrote Jon Nadler, senior analyst at Kitco Metals, Inc. [Read Nadler’s full commentary.]

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,313.00 an ounce, which was a decline of $4.75 from Tuesday’s PM price. Silver was at $16.330 an ounce for a 73 cent loss. Platinum was fixed $10.00 lower to $1,313.00 an ounce.

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.

In related bullion news, US Gold Buffalo Coins Topped 110K in sales in less than two weeks. The figure represents 64.2 percent of the total (172,000) that was sold in all of 2008.

Visit sister site CoinNews here for more on this article, to include oil, stocks and precious metal commentary.

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