Gold Touches $1,100/oz, Silver Retreats – 11/06/2009

by Bullion Prices Staff on November 6, 2009

Gold futures touched a fresh high of over $1,100 an ounce on Friday before settling below the milestone to pair its gains. The rise was the fifth straight for the yellow metal, and according to reports was helped by the Labor Department’s data showing that the US unemployment rate jumped to a higher than expected 10.2% in October.

The news failed to drive other commodities forward, however. Silver, platinum and oil retreated for the day.

New York precious metal prices follow:

  • Gold for December delivery rose $6.40, or 0.6% to $1,095.70 an ounce. It ranged from $1,086.50 to $1,101.90 — a new all-time high.

  • Silver for December delivery declined 3.5 cents, or 0.2%, to $17.375 an ounce. It ranged from $17.27 to $17.630.

  • January platinum fell $14.70, or 1.1%, to $1,348.20 an ounce.

Notable bullion quotes of the day follow:

"We believe the rally in gold prices will continue," Michael Lewis, an analyst at Deutsche Bank AG in London, said in a report that was cited on "Further advances in the gold price will be based on fresh lows in the U.S. dollar, central bank buying of gold" and "increasing inflation volatility."

"With unemployment at 10%, the implications for Fed policy is that they have their hands tied and cannot defend the dollar," Joe Foster, manager of the Van Eck International Investors Gold Fund said on "We’re going to see lots of new records going forward."

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,096.75 an ounce, which was a $7.75 increase. Silver rose 14 cents to $17.52 an ounce. Platinum was set $12.00 lower to $1,347.00 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.

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