Gold Starts Week Higher, Silver Rises Above $17 – 1/25/2010

by Bullion Prices Staff on January 25, 2010

US gold futures on Monday broke a three-day losing streak and climbed from a monthly low as the US dollar weakened. Additional factors contributing to the yellow metal’s rise, according to reports, were rising crude oil prices and increased physical purchases. Other metals gained as well, with silver notably returning back above $17 an ounce. New York bullion figures follow:

  • Gold for February delivery gained $6.00, or 0.6%, to end at $1,095.70 an ounce. It ranged from $1,092.20 to $1,104.00.

  • Silver for March delivery rose 21.3 cents, or 1.3%, to finish at $17.145 an ounce. It ranged from $16.990 to $17.275.

  • April platinum ended $1.60 higher, or 0.1%, to $1,546.10 an ounce. It ranged from $1,531.10 to $1,564.60.

In PM London bullion prices, the benchmark gold price was fixed earlier to $1,095.25 an ounce, which was up $11.25 from Friday. Silver dropped 12 cents to $17.160 an ounce. Platinum was settled at $1,543.00 an ounce for a $3.00 gain.

"Gold rallied from being oversold temporarily," metals analysts at Royal Bank of Canada said in a note that was cited on MarketWatch.

"The dollar is giving traders a green light to buy gold," Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said on Bloomberg. "The market is going to be range-bound until we get more clarity on interest rates and the direction of the dollar."

"A pretty data-intensive week is now on tap, giving ample opportunities for trading and continuing volatility. There is ample repair work for gold to do, but dollar strength (absent major negative impact news) continues to be manifest, thus gains could run into limits," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "The obvious focus, for now, remains on the FOMC meeting on Wednesday, and on Friday’s advance GDP figures for Q4."

New York crude-oil for March delivery gained 72 cents, or 1%, to $75.26 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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