Precious Metals Decline as Oil and Stocks Plunge

by on October 15, 2008 · 0 comments

Bullion update ...New York precious metals futures fell Wednesday along with oil and stocks. While gold declined just 50 cents in its fifth straight day of losses, silver and platinum plunged by 8 percent and 6.6 percent respectively. The Dow suffered its second-biggest point drop in history, falling as much as 780 points earlier in the afternoon.

Government reports released Wednesday cast an economic picture of falling producer prices, and dreary retail sales that disappointed investors across the board.

November crude-oil tumbled $4.09, or 5.2 percent, to close at $74.54 per barrel. Oil is at its lowest point in more than a year, and down 49 percent since its high of $147 in July.

December silver fell 88 cents to close at $10.18 an ounce.

January platinum plunged $68.40 to end at $975.20 an ounce.

Gold for December lost 50 cents to settle at $839 an ounce.


"The US dollar refused to sink on any of these bad news headlines, and rose to 82.10 on the index, albeit it offered enough room for gold prices to climb back to near $845. Further advances in bullion were hampered by once again sharply falling crude oil values," said senior analyst Jon Nadler at Kitco Bullion Dealers.

"New York gold had a relatively subdued Wednesday session, as it alternated between double-digit gains and returns to unchanged levels. Most of the day was spent in the $840-$850 range basis spot, as nervousness was the main feature among participants. For the moment, the weight of the deep funk felt in the global markets is keeping gold on the defensive," added 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 or safe-haven 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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