Gold Falls $15, Giving Up 2%

by on November 5, 2008 · 0 comments

New York gold futures fell 2 percent on Wednesday as oil dropped and the U.S. dollar was propped up. A slumping economy was a cited culprit with fears of eroding demand for commodities. Silver and platinum gained 3.2 percent and 2.6 percent, respectively.

Bullion update ...December crude-oil fell $5.23, or 7.4 percent, to close to $65.30 a barrel, retreating from Tuesday’s 10.4 percent gain.

December silver rose 32.5 cents to end at $10.455 an ounce.

January platinum gained $22.30 to settle at $880 an ounce.

Gold for December lost $14.90 to close to $742.40 an ounce.


"The stock market lost 6 trillion dollars of value this year and has thus far not shown too many signs of having bottomed. Under such poor conditions, commodities may well take a two or so year breather and either try to form a base or decline to somewhat lower levels," said senior analyst Jon Nadler at Kitco Bullion Dealers.


Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies. When prices are falling and economic activities are shrinking, gold prices tend to move lower.

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

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