Precious Metals Lower, as Oil Drops Slightly and Dollar Gains

by CoinNews.net on September 3, 2008 · 0 comments

New York precious metals fell for the third consecutive trading session, as crude-oil retreated slightly and the U.S. dollar gained against the euro and British pound. Silver felt the worst of it with a fall of 1.5 percent. It was followed by platinum and gold at 0.8 percent and 0.3 percent, respectively.

Bullion update ... October oil fell by just 36 cents, to close to $109.35 per barrel.

December silver slipped by 20 cents to end at $12.95 an ounce.

October platinum lost $11.30 to $1,392.20 an ounce.

December gold drops for a small loss of $2.30 to close to $808.20 an ounce.

"Gold headed back to revisit Tuesday’s low of $790 and then recovered once again before the close of futures trading," said senior analyst Jon Nadler at Kitco Bullion Dealers.

"Doubts remain in place as to its ability not only to close above the round figure, but of avoiding a near-term decline to retest the $775 zone. Dollar strength is still sapping the confidence… Bullion is off nearly 11% over the past 30 days," continued Nadler.

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

Check out CoinNews market resources at Live Silver, Gold & Platinum Spots, the Silver Coin Calculator and the Inflation Calculator.

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