Platinum Continues Dive, Gold Drops Tad

by on July 24, 2008 · 0 comments

New York platinum continued its free fall Thursday while gold stopped bleeding to close just slightly lower. Crude-oil gained $1.05 to end at $125.49 a barrel, but a firm US dollar kept gold in check.

Bullion update ...Car demand fear was cited for platinum’s loss, as the metal is used in catalytic converters. The metal is near a six month low.

Silver dropped 16 cents to $17.30 an ounce.

Platinum continued its losing streak, falling sharply to $1,713.80 an ounce for a daily drop of $47.

Gold lost just 50 cents, closing to $922.50.


"Gold remains on the defensive, following the shift in sentiment after the start of this week" said senior analyst Jon Nadler at Kitco Bullion Dealers.

"The $915 area remains a support zone that must hold, lest the metal next tries to find buyers under $900 per ounce."

"The automobile saga continues to churn the noble metals markets. Ford bled nearly $9 billion," said Nadler


A falling greenback makes commodities like silver, gold and platinum, cheaper for overseas investors.

Gold typically follows oil and moves opposite to the dollar, as a weakened dollar encourages investors to buy gold, also considered a hedge during times of high inflation and economic uncertainty.

Bullion spots are available on the CoinNews page, Silver, Gold & Platinum Spots.

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