US Gold Retreats from $1,227.50/oz Record, Paring Gains – 12/03/2009

by Bullion Prices Staff on December 4, 2009

Gold prices in New York jumped to another record high on Thursday — for the third straight day — before pulling back to close for a small gain. Silver and platinum were less fortunate, registering daily losses of at least 0.8%. New York bullion prices follow:

  • Gold for February delivery rose $5.30 to $1,218.30 an ounce. It ranged from $1,205.20 to $1,227.50 — the latest all-time high.

  • Silver for March delivery fell 19.8 cents, or 1.0%, to $19.128 an ounce. It ranged from $18.835 to $19.500 — the highest level since July 2008.

  • January platinum declined $12.60, or 0.8%, to $1,493.70 an ounce. It ranged from $1,491.10 to $1,513.00.

In PM London bullion, the benchmark gold price was fixed earlier in the day to $1,208.75 an ounce, which was decline of $3.75 from Wednesday. Silver retreated 7 cents to $19.110 an ounce. Platinum was settled at $1,494.00 an ounce, for a gain of $9.00.

Notable bullion quotes of the day follow:

"Gold continues to defy gravity and for good reasons: The shift out of fiat currency such as the dollar is happening at a swifter pace than most imagined it would," Kevin Kerr, president of Kerr Trading International, said on MarketWatch.

"We expect the low U.S. real interest-rate environment to continue to provide strong support for gold prices in 2010 and 2011," Goldman Sachs Group Inc. analysts said in the report that was cited on Bloomberg.

"Someone else, who is also a personal friend, reaffirmed gold’s intrinsic role and the proper way to treat it: not a tool with which to make money (an investment) but rather as a vehicle for capital preservation (a savings device). In such a context, the gold PRICE and where it was, where it IS, or, where it might be going, is the VERY LAST THING that matters. At ALL," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

New York crude-oil for January delivery lost 14 cents, or 0.3%, to $76.46 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.

In related gold bullion news, the US Mint today released fractional 2009 Gold Eagles. First day sales were strong with 345,000 coins sold to US Mint authorized purchasers for a total of 58,000 ounces of gold.

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