Fundamental Precious Metals (2010-03-29)

By IBTimes Staff Reporter | March 29 2010 4:26 AM

Gold prices decline on renewed Greece budget fears

The precious-metal prices are slightly changed while there are anticipations that Greece's budget woes continue which in the future will boost the dollar as investors seek safe-haven assets therefore reducing the appeal of gold as an alternative investment.

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Friday, gold rose $15.70 or 1.44% to close at $1107.28 an ounce while the dollar lost strength six major currencies which are measured by the Dollar Index, declined Friday to close at 81.23 while recording a high of 81.38 and a low of 81.22.

Among other precious metals; platinum is traded at $1605.50 from $1597.50; palladium at $459.50 from $455.70; silver at $17.08 from $17.00; while, copper is at $346.86 from $346.30. Turning to commodity futures we see last week Friday, S&P GSCI closed at 512.99 points recording a high of 519.82 points and a low of 511.40 points while RJ/CRB Commodity closed at 267.32 points recording a high of 269.12 points and a low of 266.64.

SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, stood steady at 1,124.64 metric tons. Gold was set in London on Friday at $1096.50 per ounce declining from $1098.00 per ounce during the AM fixing.

In addition, stocks in Asia climbed as a result of commodity and bank stocks rising while metal prices rose while China Petroleum & Chemical and China Construction Bank Corp. posting higher earnings.

Turning to oil, we see that prices are rising as a result of projections that there will be higher demand on fuel as a result of global economic recovery occurring therefore encouraging investors to enter oil markets as they seek potential in profits.

Currently, spot gold is traded at $1111.92 an ounce recording a high of $1112.80 an ounce and a low of $1105.55 an ounce.