Learn How Precious Metals Move Up As The Dollar Drops Directly At Precious-Metal.org

February 26, 2010 – Precious metals continued to move up today as the dollar dropped on negative economic news and a slightly stronger euro. Continuing the gains made yesterday, platinum was up $8.00 today to $1,539.00, silver climbed 39 cents to $16.49 and gold moved to $1,117.80, up $10.20 in midday trading.

Reacting to a weaker dollar, the euro held steady for the day, rising to 1.3619 as the US currency continued to reel from negative economic news for the week. Fed Chairman Ben Bernanke’s Congressional testimony did little to encourage investors in the dollar, and unemployment results turned downward as the number of jobless unexpectedly rose. Yesterday, the US housing market received bad news as new home sales fell to their all-time low, while loan applications for homes dropped to a 13-year low.

The US Dollar Index began to drop yesterday as the numbers started stacking up against the dollar. Today has been more of the same as the index fell to 80.38, down 0.360 for the day and over 1.10 in two days after trading near 81.50 on Wednesday, emphasizing the concern that analysts have for the state of the US economy and demonstrating a willingness of investors to reconsider precious metals as safe-haven assets.

With end of the month economic numbers due to be released soon, prices could continue to swing in favor of gold, silver and platinum next week. Metals will likely remain a strong source of investment during the economic struggles of the US, suggesting that investors should look to buy precious metals as the dollar drops. 

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Danny Burns

Senior Staff Writer - Precious-Metal.org