Bullion Prices Soar, Gold Hits Record and Silver at 30-Year High

by Bullion Prices Staff on November 4, 2010

Bullion prices were off to the races Thursday as the Federal Reserve’s new monetary easing plan pressured the U.S. dollar which spurred investment interest in precious metals and other commodities.

In New York futures prices, December gold was rallied $45.50, or 3.4%, to close at a record high of $1,383.10. The yellow metal reached an intraday low of $1,346.70 an ounce and met its highest point at $1,384.80 an ounce.

"Wednesday afternoon’s Federal Reserve’s FOMC statement initially roiled many markets, including precious metals. However, markets are digesting the Fed’s move and appear to have come to the consensus that the U.S. government wants to continue to deflate its currency by printing dollars, which does raise the strong possibility of problematic inflationary pressures down the road," wrote Jim Wyckoff of Kitco News.

"Investors worldwide also reckon the U.S. stimulus move by the Federal Reserve may have been unilateral and may serve to unsettle other major industrial nations at some point. This scenario is fully U.S. dollar bearish and gold/silver market bullish," added Wyckoff.

In other U.S. bullion prices, silver for December delivery surged $1.607, or 6.6% to $26.043 an ounce — a new 30-year high. January platinum added $58.70, or 3.5%, to $1,755.90 an ounce. And palladium for December delivery rose $32.05, or 5.0%, to $674.75 an ounce.

The London bullion Fix price for gold was $1,381 an ounce for a gain of $36 or 2.7%. Silver was fixed higher by 38 cents, or 1.5%, to $25.38 an ounce. The platinum Fix was $1,740 an ounce for a pick up of $31, or 1.8%. And palladium was $668 an ounce for an increase of $30, or 4.7%.

One U.S. Mint bullion coin showed gains Thursday, the American Silver Eagle. Its numbers grew by 150,000, bringing its year-to-date total to a new annual record. The following are the latest U.S. Mint coin sales figures:

November 2010 US Mint Bullion Coin Sales
November 2010 Thursday Gain 2010 Totals
American Buffalo Gold Sold Out 209,000
1 oz American Gold Eagle 7,500 0 984,500
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 255,000 150,000 28,885,500

 

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

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