Precious Metals Rise, Gold Prices Up for Fourth Day – 1/6/2010

by Bullion Prices Staff on January 6, 2010

New York gold futures on Wednesday moved higher for a fourth consecutive trading day as the greenback weakened against other world currencies. Inflation worries and continued economic concerns were also cited as reasons for gold’s 1.6% advance. In other metals, silver jumped 2.1% and platinum rose 1.3%. New York precious metal figures follow:

  • Gold for February delivery jumped $17.80 to end at $1,136.50 an ounce. It ranged from $1,116.80 to $1,138.40.

  • Silver for March delivery surged 37.5 cents to close at $18.175 an ounce. It ranged from $17.755 to $18.235.

  • April platinum rose $20.60 to end at $1,558.40 an ounce. It ranged from $1,525.00 to $1,569.30.

In PM London bullion, the benchmark gold price was fixed to $1,130.00 an ounce, which was an increase of $6.75 from Tuesday. Silver rose 32 cents to $17.890 an ounce. Platinum was settled at $1,556.00 an ounce, gaining $38.00.

Notable bullion quotes follow:

"We’ve seen the data push the dollar down and gold jump," Tom Schweer, a senior market strategist at LaSalle Futures Group Inc. in Chicago, said on Bloomberg. "With the Fed forced to keep rates low, the dollar will start to decline and that should allow gold to rally."

"The global economy is improving at a faster pace than expected, and the net result is increased demand for products, which is causing a [price] rise in commodities," Brian Kelly, chief executive of Kanundrum Research, a commodities and macroeconomic research firm, said on MarketWatch. "Investors are interpreting these price increases as inflationary and are buying gold as a hedge."

"There is a large portion of the trade that is still banking on ultra-low interest rates and the availability of near zero-cost dollars with which to fuel forays into gold, oil, copper, as well as other currencies and emerging market equities," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

The key question remains the longevity of this type of bet, (as well as that of the current interest rate environment) given recent Fedspeak. Indeed, some of the participants are treating that with typical skepticism and are labeling it as nothing more than ‘empty words.’"

New York crude-oil for February delivery soared $1.41, or 1.7 percent, to $83.18 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.

For US Mint bullion news for the day, read Silver Eagle Sales Set Milestones.

{ 1 comment… read it below or add one }

Dufminster January 7, 2010 at 2:02 pm

I find the commentary of the so called “experts”, such as Nadler at Kitco to be self serving at best. In my opinion it almost always seems that most of Nadler’s arguments are for bearish conditions. For ten years he has been wrong from what I can tell and yet he continues to be used as a source in mainstream articles as good source for articles talking about gold prices and where they are headed.

In the meantime virtually no mainstream press ever goes to the non-profit organization Gold Anti-Trust Action Comitte, GATA, which in my opinion has the most indepth research on the games played for years by the primary US and London central banks and previously a handful of other G7 banks in the arena of gold swaps, leases and other methods of gold and silver price supression. The issues concerning the seemingly massive disconnect between the paper derivatives markets for gold and silver and the amount of physical silver and gold on the silver available for deliver is papered over (pun intended) by the mainstream financial media. Its as if a mantra of “we don’t want to know the truth” is constantly being played.


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