Gold News & Info

Source: Dana Samuelson, American Gold Exchange

Austin, TX— Precious metals closed the New York session Friday almost unchanged from yesterday�s close, as short-term speculators and traders took profits and squared their books ahead of the weekend following a second week of solid gains for the precious metals complex. Despite overnight selling pressure that tested the resolve of this past Tuesday�s sharp gains, gold, silver, platinum and palladium all rebounded from early morning lows and moved steadily higher during the New York session.

The U.S. dollar index, which measures the value of the dollar against a basket of foreign currencies, fell to a new low last night of 79.06 before rebounding. To put this into perspective, the last time the U.S. dollar index was this low was on February 1st when it bottomed at 78.91. A strengthening U.S. economy and belief that the Fed would end their unprecedented QE3 stimulus program led to a dollar recovery throughout the spring and early summer with the U.S. dollar index peaking at 84.95 on July 9th. Since then the U.S. dollar index has been in a steady decline. This decline accelerated over the last two months after the U.S. dollar index fell below support of 81 on September 18th and again after support was broken at 80 on October 17th.

It�s no coincidence that October 17th was the day gold jumped over $40, from just over $1,282 to $1,323. Now the U.S. dollar index is poised to test its February low of 78.91. Based on weakening state of the U.S. economy and the inability of our government to deal responsibly with our unprecedented fiscal problems, further dollar declines are likely. A weaker dollar helps to buoy precious metals prices.

At the Comex close: December gold rose $2.20 to $1,352.30; December silver fell 18 cents to $22.61; January platinum fell 80 cents to $1,452.50; and December palladium added 10 cents, to $747.90 an ounce.