Friday Burst Gives Gold and Silver Weekly Gains

by Bullion Prices Staff on January 28, 2011

The action Friday was robust for U.S. gold future prices as concerns over escalating tensions in Egypt and the potential for the spread of riots in the region sparked safe-haven buying. The gains were enough to lift the metal into the black for the week, barely. Silver followed gold’s direction, nearly doubling its performance. Palladium and platinum also climbed, but modestly.

Gold prices for February delivery added $21.90, or 1.7%, to $1,341.70 an ounce  on the Comex division of the New York Mercantile Exchange. The gain, which was the biggest one-day jump since Nov. 4, brought prices high enough to register a weekly increase of 0.1%.

"All things Egypt. There is a major flight to quality… a stronger dollar, and flight into bonds, flight into gold," Frank McGhee, head precious metals trader of Integrated Brokerage Services in Chicago, was quoted on Reuters. "Gold is benefiting more than bonds at this particular point. People are looking at gold as a safe haven in times like this, and it’s certainly showing it," he said.

Gold prices are still down 5.6% in 2011.

March silver advanced 88.8 cents, or 3.3%, to $27.92 an ounce. It was the best performer in precious metals for the day and week. Price rose 1.8% higher over last Friday. It is down 9.8% this year.

Although palladium and platinum showed weaker gains Friday and the former actually declined for the week, both metals are the only ones in the plus category for the month and year.

March palladium prices rose $3.50, or 0.4%, to $817 an ounce, nearly flat for the week with its pick-up of only 25 cents. Palladium is up 1.7% in 2011.

April platinum prices climbed $1.50, or 0.1%, to $1,805 an ounce. It retreated 0.9% on the week but is still 1.5% higher on the year.

In earlier London bullion prices, the gold Fix was $1,319 an ounce, marking a daily decline of $15.50 and a weekly loss of 1.8%. The London silver fixing came in with a daily loss of 71 cents at $26.68 an ounce. It declined 1.7% this week.

In PGM London metals prices, palladium was fixed at $806 an ounce for a loss of $8 while platinum declined $23 to $1,784. Palladium fell 1% this week. Platinum dropped 1.8% for the week.

The U.S. Mint has not updated its bullion coin sales figures for a week, which is a very rare occurrence. The latest sales figures follow:

January 2011 U.S. Mint Bullion Coin Sales
  Previous Daily Gain Daily Gain 2011 Totals
1 oz American Gold Eagle 0 0 80,500
1/2 oz American Gold Eagle 0 0 1,000
1/4 oz American Gold Eagle 0 0 2,000
1/10 oz American Gold Eagle 0 0 15,000
American Silver Eagle 0 0 4,724,000

Figures above are in coins, not ounces sold.

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