Gold prices climbed as a result of anticipations that the dollar will plummet next year therefore increasing demand on gold as an alternative investment which therefore supports gold prices, leaving them inclining on the last day of 2009.
Yesterday, gold shed $3.80 or 0.35% to close at $1092.68 an ounce as the U.S. dollar was on the rise yesterday therefore we saw the Dollar Index, a measure of the dollar against a basket of six currencies climb and this weighed on precious metal prices, the Index is currently traded at 77.52 while recording a high of 77.93 and a low of 77.40.
Investors wait for next year as there are expectations that inflation will climb as a result of the current stimulus plans applied by major governments of the world, as they are injecting billions in markets which on the long run might trigger inflation. Precious metal is known as a hedge against inflation which is why we speculate gold prices to rise next year.
Turning to Asian stock markets, we see they are rising as the MSCI Asia Pacific Index posted the most incline since 2003 as a result of higher commodity prices while China said it was going to keep the stimulus programs active as a way to help end the global recession.
Among other precious metals; platinum is traded at $1461.90; palladium at $399.50; silver at $16.99; while, copper is at $336.15. Turning to commodity futures we see yesterday, S&P GSCI closed at 525.04 points recording a high of 528.47 points and a low of 523.08 points while RJ/CRB Commodity closed at 283.63 points recording a high of 285.17 points and a low of 283.18. The precious metal was set in London on Wednesday at $1087.50 per ounce declining from $1092.50 per ounce during the AM fixing.
Other commodities, oil prices are rising at this morning the markets opened at $79.28 per barrel; crude prices continue to climb for the seventh consecutive day as a result of the current weather conditions which means that demand on heating fuel in the U.S. economy grows led from cold weather.
Currently, spot gold is traded at $1104.45 an ounce recording a high of $1104.82 an ounce and a low of $1092.40 an ounce.
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