Precious Metals Decline as Dollar Gains Strength – 12/29/2009

by Bullion Prices Staff on December 29, 2009

US gold futures retreated 0.9% on Tuesday and for the first time in four days as the greenback gained against other world currencies. The yellow metal typical moves opposite of the dollar. Silver and platinum fell as well, with respective 2.6% and 0.9% losses. New York precious metal figures follow:

  • Gold for February delivery declined $9.80 to $1,098.10 an ounce. It ranged from $1,109.20 to $1,097.10.

  • Silver for March delivery plummeted 45 cents to close at $17.110 an ounce. It ranged from $17.545 to $17.100.

  • January platinum fell $13.20 to end at $1,467.10 an ounce. It ranged from $1,485.00 to $1,462.90.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,106.00 an ounce, which was an increase of $1.50 from the last price which was set back in the AM on Dec. 24. Silver rose 10 cents to $17.420 an ounce. Platinum was settled at $1,472.00 an ounce, gaining $16.00.

Notable bullion quotes follow:

"More sideways action was on tap for late Monday and early Tuesday in the metals markets. Gold meandered in a $10 channel between $1100 and $1110, unable to make a convincing break in either direction," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

"In so many words, nobody was interested. With a little more than two sessions to go in 2009, taking on fresh positions is probably the last thing on players’ minds. Other things yellow appear to hold more appeal (champagne, eggnog, the sands on a faraway beach…)."

"We expect the focus to be on year-end book squaring with traders reluctant to be particularly aggressive,” James Moore, analyst at TheBullionDesk.com, was quoted on MarketWatch. "Again we expect the dollar to provide a degree of price direction in the coming sessions."

"The whole key to the gold market is the dollar," Marty McNeill, an R.F. Lafferty Inc. trader in New York, said on Bloomberg. "We could have some strength in the dollar going into the new year."

For gold coin news of the day, read Fractional Gold Eagles Sell Out and 2009 Eagle Sales Jump.

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