Gold Prices Decline Sharply
Gold prices declined sharply in the spot market and futures exchanges in New York, Tuesday, January 4, 2011. The price of gold for February delivery on the Comex division of the New York Mercantile Exchange fell U.S. $ 44.10, or 3.1 percent to settle at U.S. $ 1378.80 per ounce.
The strengthening U.S. dollar on a number of major world currencies makes gold investors took profits. U.S. Dollar Index rose 0.18 percent on Tuesday to U.S. $ 79.37. While the spot price of gold fell U.S. $ 37.20.
The price of gold in Indonesia still has not dropped significantly. In the Precious Metals division of PT Aneka Tambang Tbk, gold prices still Rp404 thousand per gram. While in this Wednesday Rp398.951 Pawnshop (buy) and Rp409.181 (sell).
Commerzbank analysts said in a daily report that the general rise in U.S. dollar negative impact on the commodity. This is because investors holding currencies other than dollars should buy a more expensive commodity.
Actually, according to him, the high price of gold last few days is driven by the release of Asia’s great economic data. “This makes the Asian capital markets improve,” he said, as reported by Australian media, Proactive Investors, Wednesday, January 5, 2011.
Commodity price of copper for March delivery fell 9 cents, or 2 percent to U.S. $ 4.37 per pound on the Comex division of the New York Mercantile Exchange. Earlier this metal traded up to U.S. $ 4.47.
Silver futures for March delivery also fell U.S. $ 1.62 or 5.2 percent to U.S. $ 29.51 per ounce, the lowest price since December 27 which was then closed at U.S. $ 29.26.
Not only that, the strengthening dollar has also cut the price of oil up to 2.4 percent. Crude oil for February delivery fell U.S. $ 2.17 to as low as U.S. $ 89.38 per barrel on the New York Mercantile Exchange.