Bullion Prices Soar in October 2010

by Bullion Prices Staff on October 30, 2010

Bullion prices soared during the final two days of October 2010, capping huge weekly and even better monthly gains — three straight for gold and silver, and four straight for palladium.

In New York bullion prices, gold futures for December delivery rose $15.10, or 1.1%, to $1,357.60 an ounce. It surged 2.5%, or $32.50, this week after dropping 3.4% last week. The metal advanced 3.7% in October, 4.7% in September and 5.6% in August. Gold’s best closing price was on October 14, 2010, when it hit $1,377.60 an ounce.

Seen as the driver of prices was the U.S. dollar, which investors are speculating will weaken should the Federal Reserve introduce a second round of quantitative easing. Virtually all players expect that to happen, and will know after the FOMC meeting on Wednesday. The only questions seem to be how much, how soon and at what pace. And when those answers are known, to what degree investors have already factored in an easing and whether those expectations were too low or too high will dominate market news and naturally drive bullion prices.

"The Fed meeting next week has been dominating the markets," Standard Bank analyst Walter de Wet, was quoted on Reuters. "Ahead of that, people have positioned themselves, and from an investment perspective they are not going to add too much more gold.

"We think the gold market has priced in around a $500 billion QE exercise by the Fed," he added. "If the Fed comes out with a higher figure, we think gold will move higher. If it’s lower, it is going to be bearish for gold."

U.S. silver for December delivery rallied 68.9 cents, or 2.9%, to $24.564 an ounce — its best close in 30 years. Silver gained 6.3% this week, outperforming gold as it did for five straight weeks prior to its 4.8% plunge last week. In dollar terms, the metal rose $1.446 for the week. For October, silver prices advanced 12.6%. It was up 12.3% in September and 7.9% in August.

January platinum gained $15.10, or 0.9%, to $1,707.10 an ounce for a weekly increase of 1.9%. It climbed 2.9% in October and surged 8.9% in September. Platinum prices fell 2.4% in August.

Rounding out U.S. bullion prices was palladium — the top precious metals performer this week with its gain of 9.1%. On Friday, palladium for December delivery ended up $15.65, or 2.5%, to $645.10 an ounce — its best closing in 10 years. The metal gained 12.9% in October, 13.8% in September, 0.4% in August and 12.5% in July. Palladium monthly prices last fell in June by 4.1% to close out the second quarter.

In London bullion prices, gold was fixed to $1,346.75 an ounce for a weekly increase of $24.25, or 1.8%. Prices climbed 3% in October.

The silver fixing came in at $23.96 an ounce, which was up 91 cents, or 3.9%, for the week. Prices surged 8.6% in October.

Platinum was fixed at $1,700 an ounce for a weekly gain of $27, or 1.6%. Prices were 2.3% higher in October.

Palladium this week advanced $54, or 9.2%, to $640 an ounce. The metal gained 11.7% in October.

Weekly U.S. Gold and Silver Coin News

The following links provides information on recent U.S. gold and silver coin news (bullion and numismatic):

  • Purchase Requirements Change for US Silver Bullion Coins
    Requirements to become an Authorized Purchaser for U.S. Mint silver bullion coins have recently been revised. While these changes will be transparent for the average investor who buys the coins for their portfolio or for collectors adding to their collection, they will affect any business firms …

  • US Mint Silver Eagles Top 28M
    The latest US Mint sales data showed mixed results. Several items exceeded their prior weekly gains, especially collector sets, while all proof gold coins cooled off …

US Mint 2010 Bullion Coin Sales

There was little excitement this week in the United States Mint’s sales data for bullion coins. Figures advanced Monday and Tuesday, but then stood still. Quarter-ounce Gold Eagle bullion coins did enter the sales boards for the first time in October, adding 2,000. And the one-ounce bullion coins now have October totals that are greater than their numbers from September or August.

Silver Eagles need another 686,000 to make 2010 the best ever year for the series. Monday will be telling as the U.S. Mint will post finalized October data.

The following table lists Mint published coin sales figures as of Friday, October 29, 2010:

2010 US Mint American Eagle Bullion Coin Sales
  Prior Weekly Gain Current Weekly Gain October 2010 2010 Totals
American Gold Buffalo Sold Out 209,000
American Gold Eagle 1 oz 20,500 12,000 86,500 974,000
American Gold Eagle 1/2 oz 0 0 3,000 39,000
American Gold Eagle 1/4 oz 0 2,000 2,000 56,000
American Gold Eagle 1/10 oz 5,000 0 25,000 380,000
American Silver Eagle 1 oz 725,000 250,000 2,600,000 28,080,500

 

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

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