Gold and Silver Prices Set Fresh Highs, Bullion Coins Advance

by Bullion Prices Staff on October 14, 2010

U.S. gold on Thursday rose to a new record for a second consecutive day on dollar weakness. The yellow metal brushed near $1,390 an ounce. Silver reached a fresh 30-year high, and also for a second straight day.

Gold futures prices for December delivery closed at $1,377.60 an ounce, gaining $7.10 or 0.5%. Its intraday low was $1,371.10. Its high was $1,388.10.

"The U.S. dollar index hit a fresh 10-month low Thursday, which prompted more investor demand for the safe-have asset gold," noted Jim Wyckoff of Kitco News. "The U.S. dollar index hit a fresh for-the-move low Thursday as the selling pressure on the greenback picks up momentum. Most market watchers look for the U.S. Federal Reserve to announce a quantitative easing of monetary policy at its early-November meeting," he said.

Silver for December delivery finished at $24.435 an ounce, surging 50.3 cents or 2.1%. It daily range approached a dollar, with the low at $23.995 and the high at $24.950.

In PGM metals, January platinum added $5.20 or 0.3% to $1,712.60 an ounce, while December palladium climbed $7.90 or 1.3% to $601.55 an ounce.

In London bullion prices, gold was $1,373.25 an ounce, which was $7.75 or 0.6% higher than the prior day.

"The irony is that investors seem to be buying gold on fears of both inflation and deflation as well as when the U.S. dollar is rising and falling," analysts at Deutsche Bank said in a note to clients that was cited on MarketWatch. "This is naturally raising concerns that the move in the gold price threatens to become increasingly irrational." Gold, however, is a "safe one-way trade," regardless of whether the expected move to buy bonds to help spur the economy happens, they said.

In other London prices, silver was fixed 96 cents or 4.1% higher to $24.490. Platinum was $1,708 an ounce for a gain of $12 or 0.7%. Palladium was $598 an ounce for a pick up of $11 or 1.9%.

Fewer United States Mint bullion coins sold Thursday, although the bullion tenth-ounce American Gold Eagle increased its numbers for the first time since Tuesday. The one-ounce bullion coins moved higher as well, marking three days of straight gains. The latest U.S. Mint sales figures follow:

October 2010 US Mint Bullion Coin Sales
October 2010 Thursday Gain 2010 Totals
American Buffalo Gold Sold Out 209,000
1 oz American Gold Eagle 54,000 5,000 941,500
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 20,000 5,000 375,000
American Silver Eagle 1,440,000 90,000 26,920,500


Figures above are in coins, not ounces of gold sold.

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