Gold Marks Seven-Week High, Silver Rise

by on May 14, 2009 · 0 comments

Gold closed to a new seven-week high on Thursday following a weakened U.S. dollar, a rise in jobless claims and an increase in producer prices. In other metals, silver climbed while platinum fell. Crude-oil future and U.S. stocks ended on high notes.

Bullion update ...In New York trading futures for bullion:

  • Silver for July delivery gained 2 cents, or 0.1 percent, to $14.04 an ounce.

  • Gold for June climbed $2.50, or 0.3 percent, to $928.40 an ounce. A level not seen since March 26.

  • July platinum declined $5.70, or 0.5 percent, to $1,123.20 an ounce.


"Gold’s a safety mechanism and it’s also an anti-inflation mechanism, so you get two for the price of one," Joseph Saluzzi, co-head of equity trading at Themis Trading LLC, said in a Bloomberg Television interview. Gold has "another 10 percent upside before some profit taking kicks in."


In spot bullion, the benchmark London gold fix price gained $1.25 to $925.25 an ounce. Silver fell 30 cents to $13.84 an ounce. Platinum was fixed $15.00 lower to $1,106.00.

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.

Oil and gasoline prices

On Thursday, oil regained over 70 percent of Wednesday’s loses. Crude-oil for June delivery closed to $58.62 a barrel, rising 60 cents or 1.0 percent.

According to AAA, the average price for unleaded gasoline climbed another 1.4 cents to $2.281 a gallon. The price is 14 cents higher than a week ago.

U.S. Stocks

After multiple days of losses, U.S. stocks climbed on Thursday. The Dow Jones industrial average gained 46.43 points, or 0.56 percent, to 8,331.32. The S&P 500 Index rose 9.15 points, or 1.04 percent, to 893.07. The Nasdaq Composite Index added 25.02 points, or 1.50 percent, to 1,689.21.

In other economic news, the Labor Department reported that the Producer Price Index (PPI) fell 3.7% in the past year, the biggest year-over-year decline since January 1950. The PPI measures prices at the factory door and inflation pressures before they reach the consumer. It also said the number of U.S. workers collecting unemployment insurance jumped 3.2 percent in the week ending May 2 — the 15th consecutive weekly increase.

Check out additional market resources at Live Bullion Spots, the Silver Coin Melt Calculator, U.S. Mint Collector Bullion Price Guide, and the Inflation Calculator.

{ 0 comments… add one now }

Leave a Comment