New York (Platts)--18Sep2008

Investors were flocking to precious metals Thursday for the second
consecutive day in the wake of the virtual collapse of Wall Street titans,
which has shaken the very foundation of the US financial system. With stocks,
bonds and other commercial types of investments now weakened, investors are
left with hardly any solid place to seek shelter except precious metals and
US Treasury Bills, one analyst noted. As a result, gold and its sister
precious metals are enjoying a revival.

The nearby October gold contract on the COMEX has gained $15.30 to reach
$862.40/oz when it last traded at 10:27 am. Gold has rallied to the day's high
of $893.30/oz, but has pulled back due to profit-taking.

Also on the COMEX, the nearby December silver contract has rebounded by
74.5 cents to $12.42/oz; it has pulled back from the day's high of $12.825/oz.
The day's trading volumes in both gold and silver have been relatively high.

Also providing an anchor for precious metals is the dollar, which is now
taking a beating from other foreign currencies and is giving up most of its
recent gains. The greenback has now sunk to $1.4375/euro and $1.8175/GBP.

Investors who had been buying dollars in recent weeks have now soured on
the US currency, given the unprecedented action the Federal Reserve and the US
Treasury have taken in recent weeks by nationalizing two major mortgage
companies and taking major stakes in Wall Street's giant investment
banks.

On the NYMEX, the nearby October platinum contract has gained $24.90 over
Wednesday's close to reach $1,111.20/oz when it last traded at 10:29 am, and
the December palladium contract has rebounded by $7 to $234.10/oz.

--Ovid Abrams; ovid_abrams@platts.com