Gold gains as silver, platinum see declines

Precious metals prices were mixed on Wednesday as gold climbed on more bad news for the dollar, but other metals were lower.

The US dollar touched yet another all-time low versus the euro after China said it will diversify its foreign exchange reserves toward stronger currencies.

Responding to the dollar’s weakness, December gold in New York went as high as $848 per troy ounce in morning trade, the highest for a most active contract since gold reached its highest price ever at $873 per troy ounce in January 1980.

Later, gold pared its gains but remained $9.80 higher to trade at $833.20 by the close of floor trade in New York.

December silver was up 25.5 cents to $15.63 per troy ounce in later morning trade after going as high as $16.27 per troy ounce earlier in the session, its highest most-active contract price since January 1981.

Those gains dissolved in later trade, however, ending down 6 cents to $15.32 per troy ounce.

January platinum dropped as declines in equities markets on Wall Street prompted worries that demand for the metal, used in jewelry and in pollution control devices for motor vehicles, could decline.

Platinum was down $21.30 to $1,462 in late morning trade, and while it pared declines later it still was $18.70 lower to $1,465 per troy ounce.

In late morning trade, December palladium dropped $2.10 to $377.60 per troy ounce.