Precious metals kicked into higher gear Monday as the U.S. dollar declined and President-elect Obama’s weekend pledge to invest in infrastructure boosted markets. New York silver, gold and platinum futures soared 5.7 percent, 2.3 percent and 7.1 percent respectively.
January crude-oil gained $2.72, or 6.7 percent, to $43.55 a barrel. Its surge was helped by comments from OPEC President Chakib Khelil indicating a substantial production cut may be set at the groups next meeting later this month. The average price for unleaded gasoline dropped 1.7 cents to $1.716 a gallon, according to AAA.
March silver gained 54 cents to close to $9.97 an ounce.
January platinum surged $56.10 to end at $843.30 an ounce.
Gold for February climbed $17.10 to close to $769.30 an ounce.
"The weekend pledge by President-elect Obama to undertake the largest US public works program since the 50’s gave many a market quite an optimistic boost today," said senior analyst Jon Nadler at Kitco Bullion Dealers.
"The commodities complex was helped by a near- $3 rise in crude oil (in part, based on OPEC production cut expectations), and -with the return of a modicum of risk appetite," 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.
In bullion coin news, the remaining uncirculated American Bufflao gold coins sold out over the weekend. The final proof Buffalo gold coin went on Monday.