Gold Breaks Eight Day Losing Streak, Silver and Platinum Gain

by CoinNews.net on August 13, 2008 · 0 comments

New York gold recovered some of its luster Wednesday as did silver and platinum. After eight consecutive sessions of losses, gold finally pushed its way up with today’s rising oil prices and a slippage in the U.S. dollar.

Bullion update ...September crude-oil gained $2.99 to close at $116 a barrel, after the U.S. Energy Department reported declines in oil inventory numbers for last week.

Silver for September gained 36 cents to close at $14.85 an ounce.

October platinum recovered $37.70 to increase to $1,516.00 an ounce.

December gold gained $16.90 to reach $831.50 an ounce.

“Today’s rise can in large part be attributed to a gain in crude oil (last seen at $116.42) and to a steady but not climbing US dollar," said senior analyst Jon Nadler at Kitco Bullion Dealers.

A Bloomberg survey shows that the greenback is on course to gain against the euro, the yen, the pound, and the Swiss franc between now and spring."

A stronger U.S. currency makes commodities — like gold and platinum — priced in dollars more expensive for holders of other currencies.

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.

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