Bullion Weekly Prices Surge, Gold Closes to Record, Silver Tops $40

by Bullion Prices Staff on April 8, 2011

U.S. bullion prices advanced for a third straight week, as gold rose Friday for a fourth straight session and silver for a fifth. In the process, gold hit a new all-time record and silver reached a more than three-decade high. From high to low, weekly precious metals gains were 2.7% for silver, 1.8% for palladium, 1.2% for platinum and 1% for gold.

June gold futures prices on Friday added $14.80, or 1%, to $1,474.10 on the Comex division of the New York Mercantile Exchange. Inflation concerns and the lacking strength of the U.S. dollar dominated analysts’ opinions for metal gains.

"The Federal Reserve isn’t anywhere near an inflation fight as the ECB," Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said according to Bloomberg. "Gold’s move is about the weakness in the dollar. Inflation is the buzzword, and it’s the impetus behind the trade."

"The trend for gold and silver should continue higher next week as dollar weakness and continued geopolitical uncertainty will support the precious metals," noted Debbie Carlson of Kitco News. "Gold’s next target will be $1,500 an ounce which could come as early as next week and market watchers see little standing in its way."

May silver futures prices rallied $1.056, or 2.7%, to $40.608 an ounce. That marked a 31-year high for the metal.

"Silver could target $43 an ounce, but given the velocity of the rise, it might be due for a small correction," said Carlson.

In PGM futures prices Friday, June palladium ended up $13.95, or 1.8%, to $794.20 an ounce and July platinum ended up $21.50, or 1.2%, to $1,812.10 an ounce.

As is almost always the case, American Silver Eagles were the biggest gainers in the United States Mint bullion product line. Their sales advanced 47,000 on Friday and 700,000 for the week — the same weekly level for a forth time, indicating the Mint is rationing their distribution.

The 1 oz American Gold Eagle was the only other bullion coin to rise Friday. It advanced 7,000 on the day and 19,500 for the week.

The 1/10 oz American Gold Eagle and American Gold Buffalo have a string of two weekly increases at the same levels, 5,000 and 3,000, respectively.

As published by the U.S. Mint, weekly, April and 2011 bullion coin sales figures follow:

2011 U.S. Mint Bullion Coin Sales
1 oz American Gold Buffalo 3,000 3,000 41,000
1 oz American Gold Eagle 19,500 38,500 302,000
1/2 oz American Gold Eagle 0 0 21,000
1/4 oz American Gold Eagle 0 0 38,000
1/10 oz American Gold Eagle 5,000 5,000 165,000
American Silver Eagle 700,000 750,000 13,179,000

Figures above are in coins, not ounces sold.

In other coin news, the United States Mint said it will release the five ounce Gettysburg and Glacier America the Beautiful Silver Bullion Coins on April 25, 2011.

In London, bullion prices advanced on the day and week. When comparing the PM fixing prices from Thursday to Friday:

  • Gold gained $10, or 0.7%, to $1,469.50 an ounce
  • Silver rose 71 cents, or 1.8%, to $40.22 an ounce
  • Palladium added $20, or 2.6%, to $798 an ounce
  • Platinum advanced $23, or 1.3%, to $1,803 an ounce

From high to low, weekly gains were 2.6% for palladium, 1.8% for silver, 1.3% for platinum and 0.7% for gold.

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