Metals Advance as Dollar Weakens – March 25, 2010

by Bullion Prices Staff on March 25, 2010

US precious metals futures rose on Thursday as the dollar weakened, although it later rebounded to limit gains in gold. The yellow metal advanced 0.4% for the day while silver and platinum enjoyed respective increases of 0.6% and 1.2%.

"Technically, April gold futures have seen some more near-term chart damage inflicted this week," wrote Jim Wyckoff of Kitco News.

"Prices are in a three-week-old downtrend on the daily bar chart. Bulls’ next upside technical objective is to produce a close above solid technical resistance at $1,120.00."

In New York precious metal prices, April gold ended up $4.10 to $1,092.90 an ounce. It ranged from $1,085.50 to $1,095.60. May silver finished 10 cents higher to $16.741 an ounce. April platinum advanced $18.50 to $1,606.40 an ounce.

In London bullion prices, the afternoon gold fix was $1,093.00 an ounce for a $2.25 increase. Silver finished 11 cents higher to $16.790 an ounce. Platinum was settled at $1,593.00 an ounce, rising $7.00.

"Sadly, many adherents to the sci-fi genre that constantly sees market manipulation, price suppression, and other such evil schemes out there, do so because they are wedded to the idea that gold can, and should only go up, and that this is all about some hidden battle between the little people and Imperial Storm troopers," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

"What they have never understood is that when a market-maker takes a short position in the market, it does so not in some evil/naked/sinister fashion, but normally as a hedge against a physical position it just acquired in the process of…market-making."

New York crude oil for May delivery ended down 8 cents to $80.53 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.

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