Find Out What Made Precious Metals Move Today Directly At Precious-Metal.org

February 11, 2010 – Precious metal prices moved aggressively today on news of EU plans to help its struggling member countries. The news brought gains to metals for the third day this week, and renewed optimism that a growth period in prices for gold, silver, platinum and other metals may be ready to take place.

Gold was the big mover on today’s markets, jumping $23.80 to push past its support at $1,080 and rise to $1,095.60, tantalizingly close to its resistance point near the $1,100 per ounce mark. Silver also performed very well, realizing a 3% climb of 48 cents to $15.64 per ounce and reducing its Gold/Silver Index to 69.66:1. Platinum started the day slow but finished strong, gaining $20.00 to finish at $1,529.00 per ounce. Palladium stayed steady at $418.00.

“Gold is moving along with all of the commodities,” said Adam Klopfenstein, a senior market strategist in Chicago at Lind-Waldock, a unit of MF Global Holding Ltd. “There’s some economic optimism that’s bringing in buying. People want to embrace gold with the overall risk tolerance that is coming back into the market today.”

The US Dollar Index negatively reflected the news out of Europe by opening down at 79.87 and only managing to end at 80.00, a drop of 0.30 for the day as the euro strengthened. The lack of a financial solution in the EU had played to the dollar’s benefit, as it had gained nearly 6 points since early December on the index while its counterparts in Europe struggled.

While the details take shape in Greece over the EU’s assistance and traders in China and Japan are gone for the holidays, it’s possible that precious metals will experience a slight downturn based on lower demand. While this is possible, the expectation would be for a temporary dip and an opportunity for investors who have not taken positions to get in before any sustained rally occurs. 

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Danny Burns

Senior Staff Writer - Precious-Metal.org