US Gold Higher on Slumping Dollar, Other Commodities Rise – Feb 9, 2010

by Bullion Prices Staff on February 9, 2010

Commodities rose across-the-board on Tuesday as the euro was lifted on talks that Greece may be rescued by European countries. The US dollar retreated with the euro’s rise, and US gold, silver and platinum prices climbed. Gold often moves in the opposite direction of the dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies. New York precious metal prices follow:

  • April Gold advanced $11.00, 1.0%, to $1,077.20 an ounce. It ranged from $1,062.10 to $1,083.80.

  • March silver gained 35 cents, or 2.3%, to finish the day at $15.435 an ounce. It ranged from $15.015 to $15.595.

  • April platinum climbed $21.40, or 1.4%, to close at $1,502.40 an ounce. It ranged from $1,473.40 to $1,513.30.

In PM London bullion prices, the benchmark gold price was fixed earlier in the North American day to $1,071.25 an ounce, which was an increase of $7.25 from Monday. Silver climbed 6 cents to $15.200 an ounce. Platinum was settled at $1,496.00 an ounce for a gain of $19.00.

"With European woes easing somewhat, the dollar is retreating and demand for investment assets including gold is coming back," Hwang Il Doo, a KEB Futures Co. senior trader in Seoul, said on Bloomberg. "There are some investors seeking bargains, but the strength in gold appears temporary."

"As far as gold is concerned, it is getting a boost today from the stronger euro and a weaker dollar," Douglas Keller, analyst at Harvest Capital Services, said on MarketWatch.

"A slew of stories related to the early departure from a Sydney summit by the ECB’s Jean-Claude Trichet gave rise to speculation that something of a big announcement could be in the making regarding Greece this week. The euro found a bit of hopeful energy in the unfolding saga," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "The US dollar was thus the subject of a quick profit-taking… Gold market players took advantage of the aforementioned conditions to quickly try and execute some badly needed repairs."

In related gold and coin news, Global Metal Agency announced it is taking orders for the largest world gold coin. The coin, named the Global Liberty, contains .9999 fine pure gold, and weighs 3,333 troy ounces, or 103.6 kg. At today’s London PM price of gold, the coin’s intrinsic value would be $3,570,476.

For always updated precious metal prices, check out the home page Bullion Prices Today.

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