Precious Metals Prices Rise for Second Day – 2/2/2010

by Bullion Prices Staff on February 2, 2010

US precious metals shined for a second straight day as prices rallied with a falling dollar. Gold climbed 1.2% on Tuesday after surging 2.0% on Monday, marking its best two-day rally since early November. Gold retreated 1.1 percent in January. New York precious metal figures follow:

  • Gold for April delivery ended up $13.00 to $1,118.00 an ounce. It ranged from $1,099.50 to $1,119.90.

  • Silver for March delivery rose 8.3 cents or 0.5% to finish at $16.743 an ounce. It ranged from $16.555 to $16.810.

  • April platinum surged $39.50 or 2.6% to close at $1,578.80 an ounce. It ranged from $1,534.50 to $1,579.00.

In PM London bullion prices, the benchmark gold price was fixed earlier in the North American day to $1,111.00 an ounce, which was an increase of $24.50 from Monday. Silver jumped 55 cents to $16.780 an ounce. Platinum was settled at $1,555.00 an ounce for a gain of $35.00.

"People were pretty much getting whipsawed by the volatility. A lot of people were starting to line up for a breakdown to new lows when the dollar was climbing against the euro, but that didn’t happen. So, now they’re trying to get back in," Tom Pawlicki, precious metals and energy analyst at MF GLOBAL in Chicago, said on Reuters.

"The dollar is a big driver of this rally," Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said on Bloomberg. "People want exposure to the metals. You’re seeing the big funds coming back to commodities and quietly buying on the dips."

"Gold’s ascent continued for a second day on Tuesday, as the US dollar’s rally ran into additional profit-taking selling and dragged the currency back down," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

New York crude-oil for March delivery rose $2.80 or 3.8 percent to close at $77.23 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. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

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