Gold Marks Five-Week Low
Gold was pressured to
a five-week low Wednesday as the U.S. dollar
advanced and crude-oil declined. New York
silver, gold and platinum futures fell 1.9
percent, 1.4 percent and 2.1 percent,
February crude-oil lost 50 cents, or 1.3
percent, to close to $37.28 a barrel. Oil has
been down six out of the last seven trading
The Energy Information Administration forecasted
weaker oil demand throughout the year on
Tuesday, with prices averaging $43 per barrel in
2009 and $55 in 2010. Wednesday the agency
reported that crude inventories rose to a
AAA reported that the average price for regular
unleaded gasoline increased two-tenths of a cent
to $1.792 a gallon.
March silver lost 21 cents to close at $10.475
April platinum fell $20.20 following Tuesday’s
$17.90 loss. It ended at $935.80 an ounce.
Gold for February declined $11.90 to settle at
$808.80 an ounce.
"Today’s New York spot dealings opened with a
$4.00 gain for gold, but turned sharply lower in
quick order, as participants remained wary of
index rebalancing and as must-sell scenarios
materialized once again in the wake of the
retail and Beige Book numbers and the rout in
the Dow," said senior analyst Jon Nadler at
Kitco Bullion Dealers.
The Federal Reserve’s latest Beige Book figures
showed a U.S. economy that continued to weaken
throughout most of the nation last month.
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.