Fundamental Precious Metals (2010-02-09)

By IBTimes Staff Reporter | February 09 2010 3:55 AM

Gold prices rally as dollar slips against majors

The precious-metal prices are climbing as the dollar lost strength in the markets versus major currencies as a result of anticipations that European officials will meet this week to plan how to aid Greece into lowering their deficit, therefore reducing the appeal of the dollar as a safe-haven.

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Yesterday, gold fell $3.60 or 0.34% to close at $1061.40 an ounce while the dollar gained strength six major currencies which are measured by the Dollar Index, inclined yesterday to close at 80.41 while recording a high of 80.51 and a low of 80.08.

Among other precious metals; platinum is traded at $1485.00; palladium at $406.00; silver at $15.15; while, copper is at $292.96. Turning to commodity futures we see yesterday, S&P GSCI closed at 480.70 points recording a high of 483.66 points and a low of 476.03 points while RJ/CRB Commodity closed at 261.52 points recording a high of 262.47 points and a low of 258.55.

SPDR gold trust on February 8th 2010, the largest exchange-traded fund backed by bullion in the world, was unchanged at 1,106.378 metric tons. Gold was set in London on Monday at $1064.00 per ounce declining from $1070.00 per ounce during the AM fixing.

In addition, stocks in Asia added points for the first time in four days as there is optimism in the markets regarding the European finance ministers helping the European nations shrink their budget deficit, when investors are optimistic, they tend to turn to higher yielding assets which therefore supports the overall stock markets.

Turning to oil, we see that prices are rising on anticipations that demand will increase in the medium term on the improved global outlook therefore attracting investors to oil markets, as funds enter the oil markets causing prices to rise.

Currently, spot gold is traded at $1069.00 an ounce recording a high of $1073.20 an ounce and a low of $1061.45 an ounce.