Gold Bucks Trend and Climbs as Platinum and Oil Fall


New York gold finally showed some luster Friday by rising 2.2 percent. Silver and platinum fell 2.2 and 1.3 percent, respectively, although they gained back a sizable portion of earlier day losses. Oil tumbled once again, and has fallen 11 percent on the week.

Bullion update ...December crude oil fell $3.69, or 5.4 percent, to close at $64.15 per barrel, marking its lowest level in 17 months. In OPEC’s Friday meeting, a decision was made to cut its quota of 28.8 million barrels per day by 1.5 million barrels beginning on November 1.

Despite that, concerns over a slowing global economy with resulting less demand for oil set the tone for Friday’s decline.

December silver fell 21 cent to close at $9.30 an ounce. It went as low as $8.65.

January platinum dropped $10.30 to end at $802.30 an ounce. It reached an earlier low of $768.10.

Gold for December gained $15.60 to settle at $730.30 an ounce. It was a substantial gain compared to its intraday low of $681. The yellow metal had fallen in ten out of eleven previous sessions.

Two quotes for the day:


"Gold’s sell-offs have been sharp and brutal and it is clearly very oversold," said Mark O’Byrne, executive director at Gold and Silver investment.

"Gold prices bounced back from oversold levels near $680 and managed a return to near $730 by the end of the Friday session, thus reducing this week’s loss to ‘only’ about $50," said senior analyst Jon Nadler at Kitco Bullion Dealers.

"Deutsche Bank today opined that fair value in the yellow metal lies between $600 and $620. Suddenly, that number does not appear very distant at all," added Nadler.


Gold typically follows oil’s direction and moves opposite to the U.S. dollar, as a weakened dollar encourages investors to buy gold, also normally considered a hedge or safe-haven during times of high inflation and economic uncertainty.

Check out CoinNews market resources at Live Silver, Gold & Platinum Spots, the Silver Coin Calculator and the Inflation Calculator.

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