Precious Metals Jump as Dollar Weakens and Gold Rallies – March 2, 2010

by Bullion Prices Staff on March 2, 2010

US gold, silver and platinum prices rose sharply in New York on Tuesday. Gold reached a high it had not seen since January 20. The dollar pared earlier gains as the euro strengthened, and that was cited as a major factor in gold’s climb. The yellow metal usually moves in the opposite direction of the greenback.

In New York precious metal prices, April gold advanced $19.10, or 1.7%, to $1,137.40 an ounce. It ranged from $1,115.00 to $1,138.30. May silver surged 59.5 cents, or 3.6%. to end at $17.064 an ounce. April platinum climbed $32.00, or 2.1%, to $1,576.00 an ounce.

"Gold is holding up well in a strong-dollar environment, supported by sovereign-debt worries," analysts including Filip Petersson at Swedish bank SEB AB’s commodity unit said in a report cited on Bloomberg. "Continued high liquidity, low interest rates, sovereign-debt and exit-strategy uncertainties as well as longer-term dollar skepticism are all likely to fuel demand and limit downside risk for gold prices."

In PM London bullion, the benchmark gold price was fixed earlier in the North American day to $1,126.50 an ounce, rising $12.50 from the price on Monday. Silver advanced 7 cents to $16.570 an ounce. Platinum was settled at $1,562.00 an ounce, rising $14.00.

"In the absence of fresh fundamental news flow, prices continue to take their cue from currency movements and global macro developments," analysts at Barclays Capital were quoted on MarketWatch.

In related bullion coin news involving the United States Mint and newly released coin figures, sales in February reached 84K for Gold Eagles. The total makes last month the fifth best February ever for the gold series. Additionally, silver bullion sales were finalized for last year. US mint buyers scooped up more than 30 million 2009 Silver Eagles.

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