Bullion Prices Mixed During Second Week of March 2010

by Bullion Prices Staff on March 13, 2010

Metals were split in performance this second week of March after a strong showing during the first week where silver exploded 7% in London and platinum came in with a weekly increase of 2.9%. While other metals retreated, platinum remained strong thanks in part to reports of stronger auto sales — the precious metal is used in catalytic converters. Gold came in at the bottom, and silver in the middle.

For New York metals weekly prices, gold for April delivery fell $33.50, or 3.0%, to $1,101.70 an ounce. May silver declined 33.4 cents, or 1.9%, to $17.048. Platinum for April delivery — the only gainer — jumped $29.30, or 1.9%, to $1,608.40 an ounce.

For London bullion weekly price, gold was fixed to $1,106.25 an ounce, marking a decline of $28.75, or 2.5%. Silver ended Friday at $17.31 an ounce, rising 6 cents, or 0.3% for the week. Platinum was again the blockbuster, surging $41.00, or 2.6%, to ended the second week of March at $1,619.00 an ounce.

"The focus right now is mainly on the stock market, and it is a rarity that gold is down with a falling dollar. At some point, I foresee this relationship will go back to normal," Jeff Pritchard, analyst at California-based broker-dealer Altavest, said on Reuters.

Gold, considered a hedge during times of high inflation and economic uncertainty, historically tends to follow oil and move opposite to the U.S. dollar. Of late, however, the yellow metal has been more inclined to move in the direction of the U.S. stock market.

Recent action "once again shows to what extent gold has taken on risk asset attributes and that it has lately traded in tandem with such — normally thought to go in the opposite direction — other assets as stocks for example," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

This week we bring a video entitled "Gold Bulls’ Curious Excuse" from MarketWatch which includes the following summary:

"After rallying nearly $100 in two months, gold gave up nearly half those gains, taking many gold bugs by surprise. MarketWatch’s Mark Hulbert talks about the arguments they used to excuse gold’s weakness."

London Fix March Weekly Bullion Prices

(March 5 – 12)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
0.3%
$0.06
$17.31
Gold
 
X
-2.5%
-$28.75
$1,106.25
Platinum
X
 
2.6%
$41.00
$1,619.00

 

(February 26 – March 5)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
7.0%
$1.13
$17.25
Gold
X
 
2.4%
$26.75
$1,135.00
Platinum
X
 
2.9%
$45.00
$1,578.00

 

Check back at Bullion Prices Today for always updated silver, gold and platinum prices. For a look at recent United States Mint coin sales, to include bullion American Eagles, check out Bullion Coins Slow, DAV Commemoratives Top 131K.

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