Gold Rises as Dollar Weakens, Silver Surges

by on November 24, 2008 · 0 comments

Gold rose for a fourth consecutive session Monday as the U.S. dollar weakened against other world currencies. Silver was radiant, rising nearly 90 cents. By the end of the day, New York silver, gold and platinum futures gained 9.2 percent, 3.5 percent and 4.9 percent respectively.

Bullion update ...January crude-oil surged $4.57, or 9.2 percent, to close to $54.50 a barrel.

The average price for unleaded gasoline declined 2 cents to $1.908 a gallon, according to AAA.

December silver closed at 10.355 an ounce.

January platinum rose $40.70 to settle at $866.40 an ounce.

Gold for December gained $27.70 to close to $819.50 an ounce.


"The dollar is getting its teeth kicked in," said Matt Zeman, a metals trader at LaSalle Futures Group Inc. in Chicago. "You have big money flowing back into gold. The risk appetite is returning, and the dollar is getting decimated."


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, U.S. Mint Collector Bullion Coin Prices, and the Inflation Calculator.

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