Daily Precious Metal News

Encouraged by active trading from bargain hunters, the precious metal markets began to push back against recent gains by the US dollar to close higher in London. Gold, silver, palladium and platinum all made gains, leading the effort to overcome recent moves by the dollar.

Buyers of physically held metals have been watching as the dollar gains strength against weaker currencies in Great Britain, Greece, Portugal and other countries; these currencies have struggled as their countries battle increased financial weakening due to the credit crisis and debt concerns. Speculators and fund managers are taking advantage of hesitancy in the precious metal markets to add to their portfolios.

On Monday, the gold fixing in London stood at $1,082.00, while silver was at $16.25, platinum at $1,517.50 and palladium at $418.25 per ounce. These prices represented increases of between 0.2% and 1.0% for each metal.

As the Dollar Index corrects, the dollar is unlikely to be able to support its gains long term. The US economy is still in a mess and the burden of the additional money being circulated due to government subsidies will likely end up devaluing the dollar, making precious metals more desirable in the process.

With prices falling to a point where high demand will not allow them to stay, metal prices are primed to rise. Investors can look to gold, silver and platinum bullion as strong short term investments, while gold and silver certified rare coins offer potential as longer term holdings. With the dollar reaching the probable end of its strengthening, precious metals markets will be encouraged by savvy investors and bargain hunters who sense the opportunity to get in as prices rise. 

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Danny Burns

Senior Staff Writer - Precious-Metal.org