Bullion Prices Tumble As U.S. Dollar Surges

by Bullion Prices Staff on September 22, 2011

U.S. bullion prices tumbled Thursday as the U.S. dollar surged against other world currencies as concerns escalated that economies across the globe are losing traction.

"We see the stronger dollar weighing on all commodities including gold," Bloomberg cited Lv Xiaowei, an analyst at First Futures Co. "If the global economy continues to deteriorate, there will come a point where we’ll see both gold and the dollar going higher together as people look for least risky assets."

December gold prices tumbled $66.40, or 3.7%, to settle at $1,741.70 an ounce on the Comex division of the New York Mercantile Exchange. Prices traded between $1,723.20 an ounce and $1,789 an ounce.

Silver prices for December delivery plunged $3.891, or 9.6%, to close at $36.578 an ounce — an area silver had not seen since July. Silver prices moved between $36.405 and $39.850. The white metal still retains an 18.2% increase on the year.

Silver performed the worst in precious metals, percentage-wise. December silver prices declined $3.89, or 9.6%, to $36.58 an ounce.

Platinum-group metals were punished as well. December palladium prices fell $48.80, or 6.8%, to $664.05 an ounce while October platinum prices fell $77.60, or 4.3%, to $1,710.60 an ounce

"Given their industrial nature, these precious metals are getting caught up in the downward pull of cyclical commodities," Commerzbank analysts wrote. "As long as the environment does not brighten, the downtrend should continue."

London Bullion Prices

London bullion prices tumbled as well. Changes from the Wednesday PM to Thursday PM fixing prices show that:

  • Gold fell $71, or 4%, to $1,722 an ounce
  • Silver declined $2.40, or 6%, at $37.85 an ounce
  • Palladium fell $59, or 8.2%, to $659 an ounce
  • Platinum declined $54, or 3%, at $1,725 an ounce

United States Mint Bullion Coins

Authorized distributors of the United States Mint isolated on 1 oz. bullion coins Thursday, leaving the smaller sizes alone. After several days of silence, orders picked up for the 24-karat American Gold Buffalo bullion coin. It rose 500 to 125,000 for the year. The 22-karat American Gold Eagle bullion coin had its numbers raised by 7,000 to 708,500 for the year. Finally, the .999 fine American Silver Eagle rose 46,000, tipping its 2011 figure to just over 30.4 million.

The latest United States Mint bullion sales are provided below in the daily, September 2011 and YTD 2011 columns.

Sales of United States Mint 2011 Bullion Coins
1 oz American Gold Buffalo 500 5,500 125,000
1 oz American Gold Eagle 7,000 36,000 708,500
1/2 oz American Gold Eagle 0 1,000 62,000
1/4 oz American Gold Eagle 0 2,000 72,000
1/10 oz American Gold Eagle 0 20,000 340,000
5 oz America the Beautiful Silver not reported 1,200 382,100
1 oz American Silver Eagle 46,000 1,450,500 30,401,500


Notes. Figures above are in coins, not ounces sold. The United States Mint last updated the sales of 5 oz. America the Beautiful Silver Bullion Coins on Monday, September 19, 2011. All other figures have an "as of date" of Thursday, September 22, 2011.

For a recent summary of recent bullion and weekly numismatic coin sales, read the latest Coin Collecting News article about U.S. Mint sales.

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