US Gold Slightly Higher, Silver Advances – 1/5/2010

by Bullion Prices Staff on January 5, 2010

US gold futures finished higher on Tuesday and for the second trading day in 2010, but lost ground as the US dollar firmed against other world currencies. The yellow metal ended up only slightly by 40 cents. Silver prices drove forward, rising 1.9%. Platinum gained 0.9%. New York precious metal figures follow:

  • Gold for February delivery ended at $1,118.70 an ounce. It ranged from $1,118.10 to $1,129.60.

  • Silver for March delivery advanced 33.7 cents to close at $17.800 an ounce. It ranged from $17.510 to $17.885.

  • April platinum rose $13.90 to end at $1,537.80 an ounce. It ranged from $1,520.60 to $1,545.00.

In PM London bullion, the benchmark gold price was fixed to $1,123.25 an ounce, which was an increase of $1.75 from Monday. Silver surged 40 cents to $17.570 an ounce. Platinum was settled at $1,518.00 an ounce, gaining $18.00.

Notable bullion quotes follow:

"The weak dollar and slow economic recovery will continue to enable gold to compete with other asset classes for the marginal investment dollar," Tom Pawlicki, an MF Global Inc. analyst in Chicago who predicted the price will climb to $1,350 this year, said on Bloomberg.

"Bullion prices built upon Monday’s gains as continued US dollar weakness was manifest during the overnight hours, and as risk appetite remained elevated among speculators for the second session of the new year," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "Although the greenback did not slip substantially beneath 77.35 on the trade weighted index, and did not get too far away from 1.444 against the European common currency, commodities continued to receive heaps of cuddly attention from the speculative crowd."

Oil prices climbed for the ninth straight day on Tuesday. New York crude-oil for February delivery advanced 26 cents, or 0.3 percent, to $81.77 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.

Read about the new US Mint 2010 silver bullion coins at America the Beautiful Silver Bullion Coins.

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