February 9, 2010 – On another strong day of trading, precious metals continued their rally for a second day. Gold’s price near the close of the day was at $1,077.00, up $14.60, silver was up 44 cents at $15.42, copper 3 cents at $2.95, palladium rose to $416.00 and platinum had climbed to $1,503.00, up an impressive $33.00. Gains have come since gold hit a new three-month low on Friday, leaving investors hopeful for a sustained rally.
While precious metal prices were up, the US Dollar Index turned lower, losing 0.517 to fall to 79.78. This drop was likely in response to the mini-rally by the euro on rumors that fiscal recovery plans for Portugal, Italy, Greece and Spain could be under way. The news that the EU will assist these struggling countries could hinder gains by the dollar and help precious metals due to the view of them as alternative assets.
Analysts were speculating on continued raises in metal prices. James Moore of The Bullion Desk said of gold, “Further chart support is expected ahead of $1,044 in gold. ... Resistance is pegged at $1,073. If gold is able to close above the $1,080 area for multiple trading days, many analysts anticipate another modest leg higher.”
As direction of the market becomes obvious, investors should look to increase their holdings, possibly buying precious metal bullion in some combination of gold, silver, platinum or palladium. Diversifying between the various metals can allow for varying levels of investment and potentially capitalize on the different price movements for each. Precious metals continued their rally today, leaving investors with both gains for the day and hopes for a prolonged rally.
Senior Staff Writer - Precious-Metal.org