Bullion Weekly Prices Surge as Dollar Falls

by Bullion Prices Staff on May 28, 2011

U.S. bullion prices rallied Friday, capping weekly gains that ranged from a low of 1.7% for platinum to a high of 7.9% for silver. Gold and palladium fell in the middle with respective weekly gains of 1.9% and 3.6%. Dollar weakness coupled with worries over the European Union’s sovereign debt crisis were cited for bullion pick-ups. All precious metals advanced for a second straight week, with levels for three of the four metals performing better than last week.

On Friday, August gold futures prices rose $13.60, or 0.9%, to $1,537.30 an ounce on the Comex division of the New York Mercantile Exchange. The settlement price was gold’s best since May 3. Prices ranged between $1,520 an ounce and $1,539.50 an ounce.

"Risk assets are back in vogue, and the camp that buys commodities when the dollar is weak is jumping on that," Adam Klopfenstein, a senior strategist at Lind-Waldock, a broker in Chicago, was quoted on Bloomberg. "There’s still a place to own gold in a portfolio."

In other bullion prices, July silver futures prices rose 53.3 cents, or 1.4%, to $37.86 an ounce, September palladium prices rose $2.75, or 0.4%, to $761.90 an ounce, and July platinum prices rose $21.90, or 1.2%, to $1,800 an ounce.

Buyers of United States Mint bullion coins purchased fewer of them this week than last week. Unit-wise, as is typical, demand was highest for the American Silver Eagles. By the end of the month, their sales should surpass 3 million for May and could potentially reach 19 million for the year.

Two five-ounce silver issues had their debuting sales figures released this week. One was for the bullion five-ounce Olympic National Park Silver Coin. For how it did as well as other U.S. Mint coins, read about the Yellowstone and Olympic Silver Coins Debut.

Daily, May 2011 and YTD 2011 bullion sales are shown in the table below:

United States Mint 2011 Bullion Coin Sales
1 oz American Gold Buffalo 0 6,500 2,500 15,500 74,000
1 oz American Gold Eagle 0 9,000 11,000 92,500 450,500
1/2 oz American Gold Eagle 0 2,000 0 22,000 55,000
1/4 oz American Gold Eagle 0 0 0 4,000 56,000
1/10 oz American Gold Eagle 0 0 0 15,000 215,000
5 oz America the Beautiful Silver 0 3,000 60,700 88,700 314,100
1 oz American Silver Eagle 0 750,000 743,000 2.999M 18.247M

Figures above are in coins, not ounces sold.

London Bullion Prices

London bullion prices moved in the same positive direction as those in New York. When comparing the PM fixing prices on Friday from those on Thursday:

  • Gold gained $14.50, or 1%, at $1,533 an ounce
  • Silver rose 74 cents, or 2%, at $37.69 an ounce
  • Palladium gained $2, or 0.3%, at $757 an ounce
  • Platinum rose $7, or 0.4%, at $1,786 an ounce

Silver gained the most this week, rising 8.3%. Ranking second was palladium with an increase of 3.1%. Gold and platinum followed with weekly increases of 2.8% and 1.1%, respectively.

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