Learn Why Precious Metals Prices Rose In Asia Directly At Precious-Metal.org

March 8, 2010 – On news of strengthening demand and a possible resolution for the Greek debt crisis, the US dollar tumbled and precious metal prices rose during Monday’s Asian trading. For the day, gold closed at $1,137.73, silver rose to $17.4675 and platinum ended at $1,585.75.

The US dollar dropped for a second day in the Asian market, down 0.128 and standing at 80.30 at 10:30 AM EST on Monday. Bloomberg reported that according to Steven Zhu, head trader at Shanghai Tonglian Futures Co, “Dollar weakness is generally positive for gold.” The dollar dropped against 15 of 16 other main currencies it is traded against in Asia today.

Demand for precious metals appears to be rising as well. After last week’s announcement that Ford Motor Co had an increase of nearly 45 percent in sales and General Motor had a 12 percent gain, palladium and platinum demand was expected to increase. Gold demand is increasing as well, with SPDR Gold Trust, largest gold ETF, adding 0.8 percent to its gold holdings to increase to 1,116.12 tonnes.

A possible resolution in the sovereign debt crisis in Greece is seen by analysts as helping precious metal prices as well. After a weekend meeting between Greek Prime Minister George Papandreou and German Chancellor Angela Merkel for discussions on the situation, French President Nicolas Sarkozy said the euro region is ready to rescue Greece if necessary.

As Steven Zhu said, “Gold is being lifted by the rest of the commodities complex,” as gold and the other precious metals rose today. 

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org