Gold on the Rise, Platinum Has Huge Day

Tuesday, 15 January 2013
Written by 
Published in United States Economy
Gold prices surged up for the second straight session, while platinum was also strong, actually surpassing the yellow metal in price for the first time since March of 2012. Gold may continue to experience price spikes this week as we take in the news that the monetary stimulus programs will remain in place for the time being.

Gold for February delivery was up again, this time by $12.20 to come in at $1,681.60 an ounce at the Comex division of the New York Mercantile Exchange. Gold price traded as high as $1,684.70 and as low as $1,666.20 an ounce, while the spot price of the yellow metal added $14.60.

Platinum was also on fire, and as mentioned above, surpassed gold in price for the first time in almost a year. Platinum prices for March delivery surged by $27.80 to come in at $1,685.40 an ounce. It was a strong day for platinum indeed.

Despite the fact that we heard news of the monetary policy more than likely staying in place for now, gold traders also began speculating this week on the possibility of Congress failing to raise the debt ceiling, as such an event would likely drive up the price of the precious metal as investors would flock to the asset as a hedge against uncertainty.

Traders may recall that Congress' debt-ceiling battle in 2011 led to historic highs for gold as bitter division rocked stock markets and resulted in the eventual downgrade of the United States' credit rating.

All of the above was brought home by Federal Reserve Chairman Ben Bernanke speaking Monday at the Gerald R. Ford School of Public Policy at the University of Michigan and reiterated that the U.S. economy still was not yet out of the woods. Bernanke's comments essentially were in line with a speech given by Chicago Fed President Charles Evans, who spoke Monday and reaffirmed that the U.S. would need more quantitative easing in the near term.

While this was great news for investors and traders, quantitative easing will have to stop at some point. Hopefully the economy will be strong enough to withstand the change and be able to move forward normally.

Look for gold to remain strong through this entire week, while platinum may continue to beat gold in price for a while too. Both metals had an excellent day and they should both be on your short list of possible precious metal investments for the near future and beyond.
Read 1402 times
Jeremy Holcombe

Jeremy is a seasoned finance writer who has been studying the gold and silver industry for many years. His vast knowledge in the precious metals sector led him to Goldco Direct, where he is now one of their most recognized writers both on the site and around the web. Along with being a senior Precious Metals writer for Goldco Direct, he is frequently featured on many financial sites on the internet where they tap into his knowledge about gold. Jeremy is passionate about educating investors about the yellow metal as its price continues to rise to record breaking levels.