Gold Higher for Eighth Year
not only ended higher on Wednesday, but closed
up on the year for an eighth consecutive time.
Surging oil prices and a weakened U.S. dollar
supported the yellow metal’s move. New York
silver, gold and platinum futures gained 2.9
percent, 1.6 percent and 2.6 percent,
February crude-oil surged $5.03, or 12.9
percent, to close to $44.06 a barrel. However,
oil moved down 54 percent for the year, and
finished more than $100 lower from its record
$147.27 a barrel on July 11.
The average price for regular unleaded gasoline
rose one-tenth of a penny to $1.617 a gallon,
according to AAA. The average price one year ago
was $3.043 a gallon.
March silver gained 31.5 cents to close at
$11.295 an ounce.
January platinum rose $23.50 to end at $941.50
Gold for February climbed $14.30 to settle at
$884.30 an ounce.
Senior analyst  Jon Nadler at  Kitco
Bullion Dealers provides projections for gold
prices in 2009:
"The trading range will likely remain as wide as
this year’s $350 while volatility will remain an
integral part of daily, weekly, and monthly
swings. Prices might touch $630 on the low side
and $980 on the high side - however, factor in
some imponderables (severe deflation and/or
catastrophic geopolitical developments) and one
could augment either end of the scale by $100.
Barring the latter, the average gold price will
likely register near $810 per ounce, following
its $871 average for the current year."
Gold, considered a hedge during times of high
inflation and economic uncertainty, tends to
follow oil and move opposite to the U.S. dollar.
A rising greenback makes dollar-denominated
commodities, like bullion, more expensive for
holders of other world currencies. When prices
are falling and economic activities are
shrinking, gold prices tend to move lower.