Bullion Prices Drop Sharply, Silver Plummets 7.7%

by Bullion Prices Staff on May 11, 2011

U.S. bullion prices moved sharply lower Wednesday as the greenback rallied and oil prices shot lower. Gold, palladium and platinum closed with respective losses of 1%, 2.4% and 1.3%, breaking their three-day winning streaks. Silver plunged the most, falling 7.7% and halting its two-day rally after having been hit last week by a staggering loss of 27.4%.

June gold prices closed down $15.50 to $1,501.40 an ounce on the Comex division of the New York Mercantile Exchange. The yellow metal traded as low as $1,495.40 and as high as $1,526.80 an ounce.

"The correction in the dollar will have more room on the upside, and that’s going to pressure precious metals,” Matt Zeman, a strategist at Kingsview Financial in Chicago, was quoted on Bloomberg. "Too many people were short the dollar and long gold. There will be additional unwinding of that trade."

In other precious metals, July silver prices lost $2.97 to end at $35.52 an ounce, June palladium fell $17.25 to $715.40 an ounce, and July platinum declined $23.10 to $1,777.80 an ounce.

In comparing current to previous London bullion PM fixing prices, platinum remained unchanged at $1,793 an ounce while the other metals were mixed.

  • Gold lost $5.50, or 0.4%, at $1,508.00 an ounce
  • Silver added 78 cents, or 2%, at $39.18 an ounce
  • Palladium declined $8, or 1.1%, at $725 an ounce

The two biggest United States Mint American Gold Eagle bullion coins rose Tuesday. All other Mint bullion products remained unchanged. The latest bullion coin gains are shown in the below table.

2011 United States Mint Bullion Coins
  Daily
Gains
May
2011
2011 Totals
1 oz American Gold Buffalo 0 5,000 63,500
1 oz American Gold Eagle 1,500 68,500 426,500
1/2 oz American Gold Eagle 2,000 19,000 52,000
1/4 oz American Gold Eagle 0 4,000 56,000
1/10 oz American Gold Eagle 0 15,000 215,000
5 oz America the Beautiful Silver 0 54,400 237,800
American Silver Eagle 0 1,421,000 16,669,000

Figures above are in coins, not ounces sold.

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