Gold Prices Glisten at $562/Ounce

With the once mythic $500 mark a distant memory, gold prices reached a fresh 25-year high on Monday night (Eastern Pacific Time), even though the New York Mercantile Exchange (Nymex) was closed Monday for the Martin Luther King, Jr. holiday. The absence of most US traders did not deter prices, which reached $562 an ounce.

The buying was triggered by the dollar's weak outlook coupled with concern over threats to Nigerian oil exports and Iran's nuclear program, reported Reuters.

European analysts, concerned about the American economy are showing diminishing belief in US paper money and are therefore increasing their investment in gold.

"A global scramble for [gold] is now unfolding, as the fund-driven price action is snowballing and attracting investors from all walks of life," said Jon Nadler, an investment products analyst at bullion dealers Kitco.com quoted by MarketWatch.

At close of business Friday, other metals also finished up. (Regular trading resumes Tuesday on Nymex.)

On Friday, March silver closed up 10.5 cents at $9.165 an ounce, down fractionally for the week. March copper climbed to $2.1125 a pound, gaining 2.5 cents to end the week 1.3 percent higher. Prices had earlier reached a record of $2.125.

April platinum closed up $13.60 at $1,043.60 an ounce to mark its highest level since 1980. Prices closed at $1,004.60 a week ago, and so were up 3.9 percent.

March palladium added $7.25 to close at $283.85 an ounce, ending the week with a $10.45 gain.