US Gold, Metals Soar on Weakened American Dollar – 1/4/2010

by Bullion Prices Staff on January 4, 2010

Precious metals jumped on the first day of trading in 2010 as the US dollar slid against other world currencies. A cited reason for the dollar’s decline and gold’s gains was positive news on China manufacturing data. 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 February delivery surged $2.15, or 2.7%, to $81.51 a barrel.)

By close of trading on Monday, US gold futures rose 2.0%, silver soared 3.7%, and platinum jumped 3.6%. New York precious metal figures follow:

  • Gold for February delivery rose $22.10 to $1,118.30 an ounce. It ranged from $1,093.80 to $1,124.6.

  • Silver for March delivery surged 61.8 cents to close at $17.463 an ounce. It ranged from $16.850 to $17.585.

  • April platinum soared $52.90 to end at $1,523.90 an ounce. It ranged from $1,471.00 to $1,533.80.

In PM London bullion, the benchmark PM gold price was fixed to $1,121.50 an ounce, which was an increase of $17.50 from Dec. 31. Silver rose 18 cents to $17.170 an ounce. Platinum was settled at $1,500.00 an ounce, gaining $34.00.

Notable bullion quotes follow:

"The first full trading day of the new year started off with a pattern reminiscent of the year that just passed; namely, dollar selling/ commodities buying," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

"News that China’s manufacturing activity grew at the highest rate in over five years stimulated the by-now-familiar trade among players. Thus, the US dollar gave up sitting on the 78 perch on the trade-weighted index and promptly fell 0.36 this morning, to 77.56 and lost more than 1% against the loonie."

"You’re seeing this pop in gold because the dollar is getting sold on the first day of trading" in 2010, Matt Zeman, a LaSalle Futures Group Inc. metals trader in Chicago, said on Bloomberg. "Those who held their longs through last month’s correction are adding to their positions. Gold’s behavior is indicative of a bull market."

"There is also renewed fear of inflation in China and globally," Martin Hennecke, an associate director at Tyche Group Ltd, said on MarketWatch in commenting on today’s gold rise. "Gold is widely bought as a hedge against inflation and becomes more attractive when inflation risks are on the rise."

In US Mint coin news worth knowing, read about the bullion America the Beautiful Silver Coins. These five ounce, .9999 fine silver coins are "duplicates" of the upcoming eleven-year America the Beautiful Quarters series to honor national parks and other national sites. The 2010 quarters and their silver versions will commemorate Hot Springs National Park in Arkansas, Yellowstone National Park in Wyoming, Yosemite National Park in California, Grand Canyon National Park in Arizona, and Mt. Hood National Forest in Oregon.

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: