Bullion Prices Mixed as Gold, Silver and Platinum Rise

by Bullion Prices Staff on November 2, 2010

U.S. bullion prices were mixed Tuesday, with all but palladium gaining. Gold prices rose modestly as the U.S. dollar fell one day before the Fed is expected to announce another round of quantitative easing.

"The U.S. dollar index was modestly lower Tuesday. The dollar index remains technically and fundamentally weak, which has been and continues to be bullish for the precious metals. The value of the U.S. dollar against the other major currencies will continue to be a major driving force for the precious metals markets. Any strong rebound in the U.S. dollar index would be a significantly bearish factor for gold," wrote Jim Wyckoff of Kitco News.

"Traders are anxiously awaiting the Federal Reserve’s FOMC meeting which started Tuesday morning and ends Wednesday afternoon. It’s generally believed in the market place that the Fed will on Wednesday afternoon announce a fresh quantitative easing measure to help stimulate the U.S. economy. The focus among many traders recently has been the size of the expected ‘QE’ package from the Fed," added Wyckoff.

In New York futures prices, December gold was $1,356.90 an ounce for a pick up of $6.30, or 0.5%. Gold saw an intraday low of $1,350.20 and a high of $1,359.90 an ounce.

"Gold is poised to move higher on the weaker dollar," Frank Lesh, a trader at FuturePath Trading in Chicago, was cited on Bloomberg. "The dollar is gold’s main driver, and how much and how fast it moves lower depends on what the Fed says."

In other U.S. futures prices, December silver added 28.4 cents, or 1.2%, to $24.836 an ounce, January platinum advanced $7.60, or 0.4 percent, to $1,719.10 an ounce, but December palladium fell $3.25, or 0.5 percent, to $645.45 an ounce.

The London bullion Fix price for gold was  $1,351.00 an ounce for a loss of $3.50, or 0.3%. Silver was fixed down 18 cents, or 0.7%, to $24.730. Platinum was $1,718.00 an ounce for an increase of $3, or 0.2%. And palladium was fixed $6, or 0.9% higher to $650.00 an ounce.

U.S. Mint bullion October 2010 Silver Eagle sales surged, breaking a streak of four declining months. October ended with 2.6 million of the bullion coins snapped up by Mint Authorized Purchasers, which was the second best ever October dating back to the American Eagle program launch in 1986.

Moving to November 2010, there were no additional sales reported on Tuesday, but Monday both one-ounce gold and silver bullion eagles gained. The latest U.S. Mint published sales figures shown below illustrate:

November 2010 US Mint Bullion Coin Sales
November 2010 Tuesday Gain 2010 Totals
American Buffalo Gold Sold Out 209,000
1 oz American Gold Eagle 7,500 0 981,500
1/2 oz American Gold Eagle 0 0 39,000
1/4 oz American Gold Eagle 0 0 56,000
1/10 oz American Gold Eagle 0 0 380,000
American Silver Eagle 105,000 0 28,185,500


Figures above are in coins, not ounces of gold sold.

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