Gold Down as Dollar Rises, Precious Metals Split

Precious metals split ways on Monday as the U.S. dollar rebounded and oil prices rose. New York gold and silver futures declined 2.5 percent and 1.7 percent, respectively, while platinum headed north to climb 1.2 percent.

February crude-oil surged $2.47, or 5.3 percent, to close to $48.81 a barrel — its highest level since December 1. And according to AAA, the average price for regular unleaded gasoline rose 1.4 cents to $1.672 a gallon.

March silver fell 20 cents to close at $11.29 an ounce.

January platinum rose $10.90 to end at $957.60 an ounce.

Gold for February lost $21.70 to settle at $857.80 an ounce.

"Gold commenced its first full trading week of 2009 under renewed selling pressure. Profit-taking liquidations in the precious metal were brought on by the surge in the US dollar (up 1.50 to 83.82 on the index)," 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.

In bullion coin news on Monday, only the 1/10 ounce 2008-W Eagle proof coin remains in the series from the US Mint. In addition, The Perth Mint of Australia issued its 2009 Koala Gilded Silver Coin.

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