Gold Climbs as Dollar Falls

by on December 22, 2008 · 0 comments

Gold rose on Monday, breaking its two day losing streak with the help of a weakened U.S. dollar. New York silver, gold and platinum futures gained 0.1 percent, 1.2 percent and 0.7 percent, respectively.

Bullion update ...February crude-oil fell $2.45, or 5.8 percent, to close to $39.91 a barrel. The average price for unleaded gasoline declined five-tenths of a penny to $1.663 a gallon, according to AAA.

March silver gained a penny to close at $10.86 an ounce.

January platinum rose $5.90 to end at $857.20 an ounce.

Gold for February climbed $9.80 to settle at $847.20 an ounce.


"Gold prices started this holiday week on a slightly firmer footing and rose for the first time in three days, albeit they were orbiting mainly around the $845 figure amid thinning trading conditions," said senior analyst Jon Nadler at Kitco Bullion Dealers.

"Few players are expected to take on significant new positions, and trend changes in either direction are not likely to take place either, as the winding down of trading for the year is well under way," 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.

Check out CoinNews market resources at Live Bullion Spots, the Silver Coin Calculator, U.S. Mint Collector Bullion Coin Prices, and the Inflation Calculator.

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