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US gold futures hit a two-week low on Wednesday, ending more than 2 percent lower, as a resurgent dollar and China's tightening of bank lending decreased bullion's appeal as a hedge against both inflation and currency depreciation. Gold for February delivery settled down $27.40, or 2.4 percent, at $1,112.60 an ounce on the COMEX division of the New York Mercantile Exchange.

GOLD: Range $1,141.70 to $1,106.80, the lowest since January 4. Gold futures pummeled as the euro hit five-month lows against the dollar on concerns over Greek debt. News that China was raising the bank reserve ratio curbed economic optimism, lessening gold's inflation hedge appeal - traders.

Gold/oil ratio 14.41 against previous session's 14.42. COMEX estimated final volume at a heavy 244,582 lots. Spot gold at $1,111.40 an ounce at 3:43 pm EST (2043 GMT), against the previous session's late quote of $1,137.95.

SILVER: March silver ends down 92 cents, or 4.9 percent, at $17.88 an ounce, down with gold. Range from $18.870 to $17.805, a two-week low. COMEX estimated final volume at 57,699 lots. Spot silver at $17.88 an ounce, versus the previous session's late quote of $18.73.

PLATINUM: NYMEX April platinum finishes down $21.80, or 1.3 percent, at $1,617.60 an ounce on profit taking after solid gains based on investment demand related to US exchange traded funds.

Holdings of ETFS Physical Platinum Trust at 144,924 ounces on Tuesday, up from 119,941 ounces on Monday, while ETFS Physical Palladium Trust at 194,977 ounce, up from 124,897 ounces during the same period. In early sessions, platinum futures hit session high $1,654.70, their loftiest level since August 2008. Spot platinum was at $1,624 an ounce.

PALLADIUM: March palladium closes up 10 cents at $462.05 an ounce, bucking broad-based downtrend due to bottom picking - traders. Spot palladium was at $466 an ounce.

Copyright Reuters, 2010


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