Precious Metals Bring a Profitable Week for Investors

February 13, 2010 – After three consecutive weeks of declines for gold, silver and platinum, precious metals responded with a profitable week for investors as all three posted net gains of between 1.1% and 2.3%. While financial news was mixed and brought little excitement, investors still pushed prices up and lent credence to the belief that conditions are in place for renewed rallies by the three. Spot prices at Friday afternoon’s fixing on the London Gold Fix saw silver rise 1.1% to $15.33 per ounce, platinum rise $30 per ounce to $1,505.00 and gold register a strong 2.3% increase to reach $1,082.00 per ounce.

In spite of three weeks of losses as the US dollar rallied against the euro, precious metals broke through this week. The gains came even as the dollar increased to 80.22 on the US Dollar Index. Lacking any driving news, metals appear to be reacting to favorable fundamentals as prices rose. Decoupling from the dollar and rising alongside the United States currency is seen as a good indicator that prices will continue to rise.

The coming week is filled with optimism for investors as well. In spite of the Chinese New Year and a three-day weekend in the United States for President’s Day, traders expect prices to continue moving upward; a Bloomberg poll yesterday indicated 72% of the analysts polled expect prices to stay steady or rise this week. Details of a Greek bailout plan could be a big factor in such a rise.

After tumbling for three weeks, precious metals prices made a strong recovery. Moving independently of the dollar, indicators suggest that the upcoming week could be a good opportunity for investors to make new purchases and profit from any upcoming price increases.

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Danny Burns

Senior Staff Writer - Precious-Metal.org