Gold Below $1,130/oz; US Mint Silver Bullion Eagles Sold Out

by Bullion Prices Staff on January 12, 2010

US and London gold fell on Tuesday after prices had just reached one-month highs in both markets on Monday. Profit taking and news that China may be raising interest rates were commonly reported as reasons for gold’s decline.

Also in the news today was the announcement by the United States Mint that its inventory of 2009-dated American Silver Eagle Bullion coins was depleted. More on that later… First to¬† New York precious metal figures:

  • Gold for February delivery fell $22.00, or 1.9%, to $1,129.40 an ounce. The yellow metal ranged from $1,158.30 to $1,124.30.

  • Silver for March delivery plunged 44 cents, or 2.4%, to close at $18.255 an ounce. It ranged from $18.810 to $18.160.

  • April platinum declined $13.90. or 0.9%, to end at $1,578.60 an ounce. It ranged from $1,623.00 to $1,561.70.

In PM London bullion, gold was fixed to $1,151.25 an ounce — a decline of $1.75. Silver fell 43 cents to $18.410 an ounce. Platinum was at $1,576.00 an ounce, marking a daily retreat of $17.00.

Notable bullion quotes follow:

“Gold’s decline has a lot to do with China’s raising reserve requirements. It was massive liquidation after prices fell below important technical levels,” Bruce Dunn, vice president of trading at New Jersey-based Auramet, said on Reuters.

“A huge emphasis is being placed by speculative market players on practically everything that the country [China] does economically at any given moment, or on what its various officials say, now and then.,” wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

“It’s a profit-taking day for gold after yesterday’s run up,”Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said on Bloomberg.

New York crude-oil for February delivery fell $1.73, or 2 percent, to $80.79 a barrel. Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar.

In bullion silver coin news previously mentioned, and in an end to what has been a rollercoaster of availability, excitement, and even some resentment, the United States Mint today said that the bullion 2009 Silver Eagles have sold out.

The latest US Mint stats indicate another 367,500 of the eagles were purchased in January, bringing the total sold to 29,134,000 — a new record by nearly 9 million. The bullion 2010-coins (both silver and gold) will launch on Jan. 19, 2010, according to the planned Mint schedule.

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