Precious Metals Rise, Palladium Jumps 5% – April 14, 2010

by Bullion Prices Staff on April 14, 2010

U.S. bullion prices rallied on Wednesday as gold was lifted by a weaker dollar, higher crude prices and an increasing volume of investment demand — that, despite a government report showing tamed U.S. inflation in March, which would normally be a bearish sign for the metal.

Commodities were also spurred by greater economic confidence, with palladium rallying the most at 5.0%.

In New York metals weekly prices, June gold added $6.20, or 0.5%, to
$1,159.60 an ounce, ranging from $1,151.00 to $1,162.80. May silver increased 16.6 cents, or 0.9%, to $18.415 an ounce. July platinum advanced $16.90, or 1.0 percent, to $1,734.20 an ounce. June palladium soared $26.20 to $548.00 an ounce.

"Fresh speculative buying interest after weaker price action Tuesday pushed Comex gold futures higher Wednesday," wrote Jim Wyckoff of Kitco News. "A lower U.S. dollar index and sharply higher crude oil futures prices also supported the gold market bulls Wednesday."

In London bullion weekly prices, the gold fix was $1,153.75 an ounce for an increase of $5.50, or 0.5%. Silver added 23 cents, or 1.3%, to $18.390 an ounce. Platinum settled up $14.00, or 0.8%, to $1,728.00. Palladium gained $27.00, or 5.2%, to $545.00 an ounce.

"What you’re seeing is a macro move up in all commodity markets," Adam Klopfenstein, a senior market strategist at Lind-Waldock, a broker in Chicago, voiced on Bloomberg. "The weaker dollar, coupled with a wave of economic optimism, is supporting every commodity."

The Labor Department on Wednesday reported a 2.3% rise in inflation over the past year, which compared to a rate of 2.1% for the 12 months ending in February. Consumer prices in March rose a modest 0.1 percent. Excluding volatile food and energy prices, core consumer prices were unchanged for the month. They were up 1.1% from a year earlier. That is right within the Federal Reserve’s comfort range of 1%-2%, giving the FOMC greater flexibility in keeping interest rates low for a longer period.

Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. New York crude oil for May delivery jumped $1.79, or 2.1%, to $85.84 a barrel.

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