Precious Metal Prices Rally as Dollar Weakens – 11/13/2009

by Bullion Prices Staff on November 14, 2009

Precious metals rallied Friday after falling Thursday when a stronger US dollar weighed into the mix, making gold less attractive to investors. Friday’s reversal came into play as the dollar fell as much as 0.6% versus the euro. New York bullion prices follow:

  • Gold for December delivery rose $10.10, or 0.9%, to $1,116.70 an ounce. It ranged from $1,101.20 to $1,117.40.

  • Silver for December delivery gained 11.5 cents, or 0.7%, to $17.380 an ounce. It ranged from $17.025 to $17.445.

  • January platinum advanced $25.50, or 1.9%, to $1,388.70 an ounce.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,104.00 an ounce, which was a decline of $10.75 from the day prior. Silver retreated 19 cents to $17.323 an ounce. Platinum was set $6.00 lower to $1,359.00 an ounce.

Notable precious metal quotes of the day follow:

"The dollar is a measure of risk aversion these days," Tom Pawlicki, an MF Global Inc. metals analyst in Chicago, was quoted on Bloomberg.com. "We still like the long-term prospects of the gold market, even though it is at risk in the short-run."

"For the moment, the speculative focus remains dollar-centric and is tracking the fallout from this morning’s economic stats but attention is slowly shifting towards pre-weekend book-squaring and speeches to be delivered by various Fed officials over coming days. The most anticipated one, of course, an address by Mr. Bernanke on Monday," wrote Jon Nadler, senior analyst at Kitco Metals, Inc."

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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