Platinum Dives Lower Still, Gold and Silver Rise

by CoinNews.net on August 19, 2008 · 0 comments

New York platinum continued its downward spiral Tuesday falling 3.1 percent. Silver and gold, on the other hand, experience gains after oil’s surge and the US dollar’s decline.

Bullion update ...After three straight days of losses, September crude-oil gained $1.66 to close at $114.53 a barrel.

Silver for September lost 0.5 cents to end at $13.11 an ounce.

October platinum lost $42.60 to close at $1,351.30 an ounce.

December gold climbed $11.10 to close at $816.80 an ounce. It had reached an earlier low point of $792.

“An amalgam of market-moving news dented the greenback’s hitherto runaway gains and sparked some fresh buys in energy and precious metals," said senior analyst Jon Nadler at Kitco Bullion Dealers.

"Optimism on the gold and oil front my be inferred from today’s price action, but the underlying shrinkage in open interest in both still presents signs of worry," said Nadler.

Negative economic news parading against the dollar included 17-year low housing starts, faster than expected June wholesale prices, and the troubled investment bank Lehman Brothers falling 13 percent in New York trading.

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, Live Silver, Gold & Platinum Spots. Check how the value of the US dollar has changed over time on the CoinNews page, Inflation Calculator.

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