Gold Rises as Oil Tumbles to Three Year Low

Gold bucked the traditional trends on Thursday and gained despite a rising dollar and oil at its lowest closing point in over three years. New York gold futures gained 1.7 percent. Silver and platinum futures fell together for the second consecutive day by 3.1 percent and 4.1 percent respectively.

December crude-oil plunged $4, or 7.5 percent, to close at $49.62 a barrel and its lowest level since May of 2005. Oil has dropped nearly $100 since its July record peak of $147.27.

The average price for unleaded gasoline fell nearly 3 cents to $2.02 a gallon, according to AAA.

December silver fell 28.5 cents to end at 9.025 an ounce.

January platinum dropped $33.60 to settle at $790.10 an ounce.

Gold for December gained $12.70 to close to $748.70 an ounce.

"Gold’s Thursday gains stuck, for a change. In fact, the yellow metal had the kind of day we wish would be seen more often; a day when it rose despite collapsing oil, a rising dollar, and continued sell-offs in stocks," said senior analyst Jon Nadler at Kitco Bullion Dealers.

"While gold had a good day, the other precious metals wilted on economic concerns," added Nadler.

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.

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