Precious metal prices are climbing
Gold prices climbed as a result of the dollar depreciating in the markets versus major currencies therefore increasing demand on gold as an alternative investment which therefore supports gold prices, also we saw that other metals like palladium climbed to an 18-month high.
Although there is weak trading in the markets as a result of the U.S. markets closed today due to Martin Luther King Day, we see that the federal currency is weakening against currencies.
Friday, gold fell $11.50 or 1.01% to close at $1130.55 an ounce as the dollar lost strength six major currencies which are measured by the Dollar Index, inclined Friday to close at 77.22 while recording a high of 77.40 and a low of 76.74.
Among other precious metals; platinum is traded at $1611.90; palladium at $454.50; silver at $18.51; while, copper is at $340.05. Turning to commodity futures we see last week Friday, S&P GSCI closed at 520.37 points recording a high of 526.38 points and a low of 519.44 points while RJ/CRB Commodity closed at 281.41 points recording a high of 284.43 points and a low of 281.12.
SPDR gold trust on January 15th 2010, the largest exchange-traded fund backed by bullion in the world, fell to 1,112.84 metric tons. Gold was set in London on Thursday at $1128.00 per ounce declining from $1132.00 per ounce during the AM fixing.
In addition, stocks in Asia declined in the shadow that filled the U.S. economy last week as the markets were filled with pessimism on Friday as the consumer confidence in the U.S. was worse than expectations. Also stock markets were affected after JPMorgan Chase & Co. posted losses in retail banking, therefore investors pulled away from stock markets.
Turning to oil, we see that prices extend their losses as a result of lower stock markets while the lower confidence reported in the U.S. economy, which is the biggest oil consumer was worse than expectations. The lower confidence indicated that demand on oil was going to be dampened therefore scaring investors away from oil markets.
Currently, spot gold is traded at $1134.95 an ounce recording a high of $1136.81 an ounce and a low of $1127.20 an ounce.