Precious metals had an outstanding day today in New York, with spot gold closing up 1% to $1,675.80, spot silver up 1.65% to $30.96 and platinum up a walloping 2.2% to $1,638.00. Platinum has now narrowed its gap to gold to less than $40, perhaps as news of expected shortages and forecasts of economic recovery gain publicity. Both gold and silver hit a 1-week high today.
Much of today’s jump in precious metals can be attributed to a tanking dollar, which dropped nearly 1% against a basket of currencies. The dollar is now the lowest since September. The flip side to that is the gain in crude oil, which hit a 3-month high today. Much of the dollar’s fall can be attributed to the strength of the euro today, on the back of “upbeat” comments by European Central Bank president Mario Drahgi, and the ECB’s decision to not provide new stimulus to European banks.