Gold Prices Touch 6-Week High, Silver Gains

by CoinNews.net on August 17, 2010 · 0 comments

Gold Prices Fall to 3-Week Low, Silver Plummets 3.2%U.S. gold prices climbed for a fourth straight day on Tuesday, lifted by a weaker dollar to reach its highest level in six weeks. Gold rose $2.10.

Silver, platinum and palladium moved higher also, with silver up 0.9 percent, platinum up 0.6 percent and palladium up 2.4 percent.

Crude oil tossed away five days of consecutive losses, rising 0.7 percent and above a five-week low. It was a day of good news for U.S. stocks as well. Major indexes rallied between 1.0 and 1.3 percent.

New York precious metals closing prices follow:

  • Gold for December delivery gained 0.2 percent to $1,228.30 an ounce. It ranged from $1,224.30 to $1,231.10 — the highest price since July 1.

  • September silver rose 16.8 cents to end at $18.595 an ounce. It ranged between $18.350 and $18.620.

  • Platinum for October delivery added $9.30 to finish at $1,546.60 an ounce. It ranged from $1,533.30 to $1,549.70.

  • September palladium advanced $11.55 to close at $497.30 an ounce. It ranged between $482.60 and $498.40.

In notable bullion quotes of the day:

"Everything about this market is looking up," Scott Meyers, a senior trading analyst with Pioneer Futures, a division of MF Global, in New York, said and was quoted on MarketWatch. From hitting bottom in late July, when gold settled at $1,158 an ounce, "it has been a steady climb … you got to love gold," he said

"People have been buying gold for protection against the weaker dollar," Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York, was noted on Bloomberg. "Investors are just chasing yields right now and looking for anything that will give them some safety."

"EW analysis has raised the odds of a sharp, upward spike in the white metal [silver] (to at least above $20 per ounce) in the wake of certain chart/wave patterns observed by its resident analysts," noted Jon Nadler, senior analyst at Kitco Metals, Inc. "This, at a time when the same analysts see a topping out pattern in gold’s most recent ascent."

In PM London bullion, the benchmark gold price was fixed to $1,226.00 an ounce, rising $2.50 from the PM price on Monday. Silver rose 34 cents to $18.540 an ounce. Platinum settled at $1,541.00 an ounce, gaining $7.00. Palladium climbed $12.00 to $494.00 an ounce.

Oil and gasoline prices

Crude oil prices rose for the first time in six sessions after falling to a five-week low.

"We’ve got higher equities and a lower dollar supporting the market," Peter Beutel, president of trading advisory company Cameron Hanover Inc. in New Canaan, Connecticut, said and was quoted on Bloomberg. "Rising equities are a sign the economy could be expanding, leading to increased demand. The fall of the dollar makes dollar-denominated crude cheaper for many buyers."

New York crude oil for September delivery gained 53 cents to finish the day at $75.77 a barrel.

The national average for regular unleaded gasoline fell eight-tenths of a cent to $2.742 a gallon, according to AAA fuel data. The price is 3.9 cents lower than a week ago, 1.9 cents higher than a month back, and 10.1 cents above the price from a year ago.

U.S. Stocks

U.S. stocks surged Tuesday "after a Federal Reserve regional president said fears about the central bank’s outlook were "unwarranted" and investors shifted their focus to strong earnings from Wal-Mart and Home Depot," wrote Annalyn Censky of CNNMoney.com.

"There has been a tug of war between weak economic data and strong corporate results. Today, the earnings finally won," John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in New Jersey, said and was quoted on Reuters.

The Dow Jones industrial average advanced 103.84 points, or 1.01 percent, to 10,405.85. The Standard & Poor’s 500 Index climbed 13.16 points, or 1.22 percent, to 1,092.54. The Nasdaq Composite Index rose 27.57 points, or 1.26 percent, to 2,209.44.

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