US Gold Retreats for Second Day – 1/28/2010

by Bullion Prices Staff on January 28, 2010

New York gold futures dropped for a second straight day as the US dollar strengthened against other word currencies, rising to a 6 1/2 month high against the euro. Silver declined as well, but platinum ended slightly higher. New York precious metal prices follow:

  • Gold for April delivery fell 90 cents, or 0.1%, to end at $1,084.80 an ounce. It ranged from $1,074.40 to 1,096.90.

  • Silver for March delivery tumbled 22.8 cents, or 1.4%, to close to $16.212 an ounce. It ranged from $16.015 to $16.755.

  • Platinum for April delivery advanced $1.80, or 0.1%, to finish at $1,493.90 an ounce. It ranged from $1,486.00 to $1,526.40.

In London bullion prices, the benchmark gold price was fixed (PM) to $1,088.00 an ounce, which was a decline of $6.75 from Wednesday. Silver fell 12 cents to $16.620 an ounce. Platinum was settled at $1,517.00 an ounce for a loss of $2.00.

Notable bullion quotes follow:

"The Fed is running out of tools," Frank McGhee, the head dealer of Integrated Brokerage Services LLC in Chicago, said on Bloomberg. "We expect the U.S. to be the last economy to be able to raise interest rates. Gold is down to a point that was oversold, so we’re seeing buyers come back."

"The precious metals have been struggling with dollar strength so far," Saxo Bank senior manager Ole Hansen, said on Reuters.

"The US currency was once again seen knocking at the euro’s “1.40″ door this morning, and was threatening to break it down (and, it did- at 8:33 AM in New York)," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "Things could get interesting, in a hurry, on such a break. Gold had more or less mirrored the euro several times in recent months."

New York crude-oil for March delivery lost 3 cents to end at $73.64 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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