Gold Futures End Near Steady Amid Dollar's Rise

Strategic Insights -

Despite a weaker start, gold futures saw a temporary rally only to erase those gains and end near steady, settling at $820.70 an ounce on the Comex division of the New York Mercantile Exchange. The metal's volatility was attributed to lower equities, a higher dollar, and a pullback in crude oil. Sterling Smith, vice president with FuturesOne, noted that gold performed fairly well considering the magnitude of the dollar's rise. However, other precious metals such as silver, platinum, and palladium saw significant declines, with silver falling 7 cents to settle at $10.68 an ounce and platinum plummeting $17.90 to settle at $956 an ounce.

Key Takeaways:

  • Gold futures regained lost ground to settle near steady, despite a weaker start, at $820.70 an ounce on the Comex division of the New York Mercantile Exchange.
  • Lower equities, a higher dollar, and a pullback in crude oil pressured the metal, but it still managed to perform fairly well.
  • Sterling Smith, vice president with FuturesOne, attributed the metal's resilience to the magnitude of the dollar's rise.
  • Silver futures fell 7 cents to settle at $10.68 an ounce due to a bearish industrial demand outlook.
  • Platinum and palladium futures saw significant declines, with platinum plummeting $17.90 to settle at $956 an ounce and palladium shedding $1.90 to settle at $185.25 an ounce.
  • The declines in precious metals were attributed to continuing weak auto demand and a pullback in crude oil.

Statistics:

  • Gold futures settled at $820.70 an ounce, down 30 cents from the previous settlement.
  • Silver futures fell 7 cents to settle at $10.68 an ounce.
  • Platinum futures plummeted $17.90 to settle at $956 an ounce.
  • Palladium futures shed $1.90 to settle at $185.25 an ounce.
  • The ICE Futures U.S. dollar index rose nearly 1.5% during the day.
  • The Dow Jones Industrial Average fell 72.08 points to settle at 8,401.89.

Sources:

  • Dow Jones Commodities News via Comtex, January 13, 2009
  • Matt Whittaker, Dow Jones Newswires, 201-938-5959, matt.whittaker@dowjones.com