Gold, silver climb as palladium, platinum see declines

Precious metals prices were mixed on Monday as gold and silver rallied on the continuing rise in the price of crude oil and on the fall of the US dollar to another new low versus the euro as most analysts were convinced that the Federal Reserve will cut US interest rates again when it meets later this week.

December gold went as high as $798.30 per troy ounce in New York at one point in the day’s trade before falling back to $792.60 per troy ounce, still a gain of $5.10 on the session.

Despite the news and the gains for gold, however, some analysts expect the metal’s price to drop based on technical issues.

Silver for December delivery also saw gains, adding 15 cents to $14.43 per troy ounce.

On the other hand, January platinum was down $3.60 on the New York Mercantile Exchange to $1,565.50 per troy ounce after going as high as $1,474.90 during the session.

Some analysts believe that demand will drop due to platinum’s 28 percent gain in prices on the year so far, into record territory, citing as evidence of their sentiment Lonmin (LSE: LMI) data showing that demand for the metal for use in jewelry has dropped by 200,000 troy ounces for each $100 per ounce increase in price.

Meanwhile, December palladium was also lower, falling 55 cents to $375.20 per troy ounce.