A weaker U.S. dollar again fed gold prices and this time to within an inch of $1,400 an ounce. However, profit-taking stepped in and snatched away most of Thursday’s gains, leaving the yellow metal a modest pick-up of $1.
"Gold is up primarily on dollar weakness and economic optimism," Adam Klopfenstein, a senior market strategist for Lind-Waldock in Chicago, said and was quoted on Bloomberg. "This is very positive for gold on the future inflation front."
Palladium was the biggest gainer among precious metals for a second straight day. Prices soared 4.3 percent after rising 4.2 percent on Wednesday. Platinum followed, advancing 1.7 percent. Strong vehicle sales supported their gains. Both platinum and palladium are used in catalytic converters. Silver came in third place among metals, adding 0.6 percent.
New York precious metals closing prices follow:
- Gold prices for February delivery rose 0.1 percent, to $1,389.30 an ounce. Prices ranged between $1,385.10 and $1,399.70 — the highest level since November 12.
- March silver prices ended up 15.9 cents to $28.572 an ounce. They ranged from $28.330 to $29.080.
- Platinum prices for January delivery added $29.10 to $1,713.10 an ounce. The metal ranged between $1,682.00 and $1,729.90.
- Palladium prices for March delivery surged $31.40 to close at $763.70 an ounce. Palladium ranged from $731.70 to $773.90.
In PM London gold prices, the benchmark gold Fix was $1,389.00 an ounce for an improvement of $3.50 over Wednesday. Silver was $28.50 for a loss of 24 cents. Platinum was fixed at $1,700.00, up $25. The palladium fixing was $25 higher as well at $741.00.
The United States Mint sold relatively few bullion coins for a second straight day. Gold Eagles remained unchanged while Silver Eagles climbed 42,000 — their first advance in November.
The biggest news of the day was the Senate passing of the American Eagle Palladium Bullion Coin Act. The bill now needs only President Obama’s signature and the United States Mint will be authorized to produce Palladium Eagles in bullion and in collector proof and uncirculated finishes.
|U.S. Mint 2010 Gold & Silver Bullion Coin Sales|
|American Eagle Gold Coin (1 oz)||2,000||1,086,500|
|American Eagle Gold Coin (1/2 oz)||0||45,000|
|American Eagle Gold Coin (1/4 oz)||0||60,000|
|American Eagle Gold Coin (1/10 oz)||0||385,000|
|American Buffalo Gold Coin (1 oz)||Sold Out||209,000|
|American Eagle Silver (1 oz)||0||32,890,500|