Gold and Silver Prices Tumble, Bullion Eagle Coins Unchanged for Second Day

by Bullion Prices Staff on January 20, 2011

Bullion prices tumbled Thursday. Silver took the biggest plunge, dropping 4.6%. Gold came in second as prices fell to their lowest point since November 19.

Gold futures prices declined $23.70, or 1.7%, to $1,346.50 an ounce on the Comex division of the New York Mercantile Exchange. A stronger dollar and economic news out of China were among the catalysts given for falling precious metals prices.

"Comex gold futures prices closed sharply lower, near the daily low and hit a fresh two-month low Thursday. A firmer U.S. dollar index and some commodity-market-bearish economic data coming out of China sunk the precious metals markets," wrote Jim Wyckoff of Kitco News.

"It was reported overnight that China’s gross domestic product was up 9.8% in the fourth quarter, on a year-on-year basis. That was slightly higher than analysts had expected and heightened speculation China’s monetary authorities will move sooner to tighten monetary policy to reduce domestic consumption. That’s commodity-market-bearish."

Gold’s daily low was $1,342.40 an ounce while its high was $1,370.90 an ounce.

In other New York metals prices, March silver lost $1.33, or 4.6%, to $27.47 an ounce, March palladium dropped $3.90, or 0.5%, to $815.85 an ounce, and April platinum fell $19.50, or 1.1%, to $1,818.60 an ounce.

For a second straight day, U.S. Mint bullion coin sales levels remained unchanged. Those levels are reported in the below table. (For a detailed break out of recent demand for bullion and silver collector coins, read the article Silver Eagles Hit New Monthly Record.)

January 2011 U.S. Mint Bullion Coin Sales
  Previous Daily Gain Daily Gain 2011 Totals
1 oz American Gold Eagle 0 0 73,000
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 4,588,000

Figures above are in coins, not ounces sold.

The London PM fixing for gold was $1,345.50 an ounce, down $26.50, or 1.9%, from the previous PM fix. Silver was fixed lower by 91 cents, or 3.1%, to $28.41 an ounce. In PGM London metals prices, palladium was $805 an ounce for a loss of $19, or 2.3%, and platinum was $1,809 an ounce for a loss of $36, or 2%.

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