Gold Touches 5-Week High, Silver and Platinum Gain


"China's import and export update also gave a boost to precious metal prices. . ."

Besides lifting crude oil, China's import and export update also gave a boost to precious metal prices by triggering fund buying, boosting demand and driving gold to a five-week high of US$1,156/oz, while silver and platinum reached US$18.81/oz and US$1,590/oz.

China reported a 32.7% year-on-year and 16.7% month-on-month increase in imports and exports in December, with exports rising 17.7% from the previous year to US$130.73 billion following 13 months of declines, while imports amounted to US$112.29 billion, marking a 55.9% year-on-year and 18.8% month on month increases.

The U.S. dollar also factored in, sliding 0.5% against a basket of currencies on disappointing jobs data, which came out in the U.S. on Friday, reporting 85,000 jobs lost in the month of November, while only a marginal increase was expected. The unemployment rate remained unchanged in December at 10%.

Gold was in selling mode last week as holdings in the biggest gold-backed fund SPDR Gold Trust (NYSE: GLD) fell 0.04% to 1,126 metric tonnes at the end of the week after declining to 1,128.75 metric tonnes last Monday, marking a decline of 4.87 metric tonnes from the end of 2009.

Mining stocks responded positively in Europe and Asia.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe