U.S. bullion prices were nearly unanimous in rising Thursday. Platinum was the outlier, dropping 0.2% for the day. Gold and silver prices rebounded with gains of 0.3% and 4%, respectively. Palladium registered a sound daily increase of 1.1%.
In December futures for gold, prices rose $5.90 to $1,763.20 an ounce on the Comex division of the New York Mercantile Exchange. CME Group Inc, Comex’s parent company, pressured gold prices early in announcing it would raise margin requirements for trading the metal by 27%. Gold quickly plummeted to a low of $1,705.40 an ounce. However, prices rebounded in the wake of rumors that Germany’s debut could be downgraded. Jim Wyckoff of Kitco Metals writes:
"The gold market moved off its daily low in mid-morning dealings and then rallied to the daily high in late U.S. trading as the U.S. stock market came under some selling pressure from the ongoing European Union debt crisis and fresh rumors regarding Germany possibly implementing a short-selling ban on stocks, and also on rumors ratings agencies were going to downgrade Germany’s credit rating. Both rumors have so far been unfounded. Bargain-hunting buying interest was also seen coming from investors as gold prices moved off the daily low.
The gold market saw strong early selling pressure Thursday in the wake of the CME Group late Wednesday announcing it will raise futures margins on gold by 27%. The move was not a big surprise to the market place, but it did prompt more strong long liquidation pressure in the futures market."
Gold tumbled 5.6% on Wednesday, marking its biggest loss since March 2008.
September silver prices rebounded from their 7.4% Wednesday trouncing. Silver prices rallied $1.58 to close the day at $40.75 an ounce.
As mentioned, PGM futures prices diverged. Palladium gained $8 to $751.15 an ounce but platinum declined $3.90 to $1,822.40 an ounce.
London Bullion Prices
Bullion prices in London are fixed earlier than futures closings in New York, and remained down. PM fixing prices included the following daily changes:
- Gold stepped back $41, or 2.3%, at $1,729 an ounce
- Silver prices fell $3.08, or 7.3%, at $39 an ounce
- Palladium declined $13, or 1.4%, at $746 an ounce
- Platinum fell $62, or 3.3%, at $1,800 an ounce
U.S. Mint Bullion Coins
Three U.S. Mint bullion coins moved higher Thursday. In most demand was the Silver Eagle, advancing the same 100,000 amount as Wednesday. A touch over that level again and it will reach 3 million in sales for August. That would top the previous month. The 1 oz. Gold Eagle bullion coin came in second with an increase of 2,500, followed by the Gold Buffalo bullion coin at 1,000.
In coin news, two articles focus on recent U.S. Mint bullion and numismatic coin sales. They are:
The latest available bullion coin totals are provided below in the daily, August 2011 and YTD 2011 columns.
|United States Mint 2011 Bullion Coin Sales|
|1 oz American Gold Buffalo||1,000||24,500||116,000|
|1 oz American Gold Eagle||2,500||92,500||661,500|
|1/2 oz American Gold Eagle||0||3,000||61,000|
|1/4 oz American Gold Eagle||0||6,000||70,000|
|1/10 oz American Gold Eagle||0||55,000||320,000|
|5 oz America the Beautiful Silver||-||10,300||380,400|
|1 oz American Silver Eagle||100,000||2,899,500||28,171,000|
Notes. Figures above are in coins, not ounces sold. The United States Mint last updated 5 oz. America the Beautiful Silver Bullion Coin sales on Monday, August 22, 2011. All other figures have an "as of date" of Thursday, August 25, 2011.