U.S. precious metals prices reclaimed some ground on Wednesday after falling off a cliff the previous day. Gold rose after the greenback struggled and dropped for its biggest single day loss since July.
Gold futures prices for December delivery edged up $8.20 or 0.6% to close at $1,344.20 an ounce. Gold reached an intraday low of $1,331.10 and a high of $1,348.10.
"Wednesday was an extra important trading day, technically, in the gold market, and the bulls came out ahead. Wednesday’s price gains and the close near the daily high now suggest Tuesday’s losses were just a healthy downside correction (also called a “reaction low”) in an overall uptrend on the daily chart," noted Jim Wyckoff of Kitco News.
"The U.S. dollar index traded sharply lower Wednesday and gave up nearly all of Tuesday’s big gains that came on the heels of an interest rate hike in China. The dollar’s sharp losses Wednesday supported bargain-hunting buying interest in the precious metals. It will be important for precious metals traders to keep a very close eye on the U.S. dollar index in the near term," added Wyckoff.
In other bullion futures prices, silver for December delivery advanced 8.4 cents or 0.4% to $23.864 an ounce while January platinum rose $9.70 or 0.6% to $1,687.30 an ounce, and December palladium surged $12.20 or 2.1% to $590.65 an ounce.
In London bullion prices, gold was fixed to $1,339.00 an ounce, which was the same price as Tuesday. The silver fixing came in 55 cents or 2.3% lower to $23.710 an ounce. Platinum was $1,670 an ounce for a loss of $2 or 0.1%. Palladium was the only precious metal to rise in London, with the Fix at $581.00 an ounce for an increase of $10 or 1.8%.
The one ounce American Gold Eagle was the only U.S. Mint bullion coin to rise Wednesday. It gained 5,000 for the day, bringing the October tally to 65,00. That is 17,500 shy of the September’s total. The most recent bullion figures from the United States Mint follow:
|October 2010 US Mint Bullion Coin Sales|
|October 2010||Wednesday Gain||2010 Totals|
|American Buffalo Gold||Sold Out||209,000|
|1 oz American Gold Eagle||65,000||5,000||952,500|
|1/2 oz American Gold Eagle||3,000||0||39,000|
|1/4 oz American Gold Eagle||0||0||54,000|
|1/10 oz American Gold Eagle||25,000||0||380,000|
|American Silver Eagle||2,000,000||0||27,480,500|
Figures above are in coins, not ounces of gold sold.