Gold Continues with Records, Silver Tops $16 – May 12, 2010

by Bullion Prices Staff on May 12, 2010

U.S. gold prices continued their rush upward on Wednesday, reaching a new record for the second consecutive day. Anaylsts opined that the climb was again thanks to worries over Eurpean Union country debt problems, with investors buying gold due to its haven appeal.

"Gold futures prices pushed to a new all-time record high of $1,247.70 an ounce, basis nearby Comex futures, Wednesday," wrote Jim Wyckoff of Kitco News. Safe-haven buying, increased demand from general investors and bullish technical momentum drove prices farther north and into uncharted territory Wednesday."

In New York precious metals prices, June gold hit $1,243.10 an ounce for a daily gain of $22.80, or 1.9%. Gold’s low point was $1,227.20. Its high was $1,249.20.

"Gold is the tangible currency of last resort," trader and senior strategist Adam Klopfenstein of Lind-Waldock in Chicago was quoted on MarketWatch. It is "reflecting exactly what’s going on … this is not a situation when one or two days of data points will change things."

Silver reached its own high, although not an all-time record. The metal hit $19.663 an ounce for a gain of 36.9 cents, or 1.9%. The intraday price of $19.735 was the best since 2008.

In terms of percent increases, other metals outperformed gold and silver. July platinum rose $46.50, or 2.7%, to $1,747.30 an ounce. June palladium added $15.25, or 2.9%, to $547.45 an ounce.

In London bullion prices, the afternoon gold fix was $1,237.50 an ounce for an increase of $15.00, or 1.2%.

"We’re seeing people who want to take money from savings accounts and put it into gold, so it’s small investors who are buying, too," Kerry Tattersall, Austrian Mint Marketing Director, said by telephone and was cited on Bloomberg. "In the last three to four weeks, we haven’t seen any orders out of the U.S. or Japan. It’s a purely European increase. It represents panic buying."

London silver did some catchup by increasing $1.17, or 6.4 %, to $19.590 an ounce. Platinum was $1,703.00 an ounce, rising $14.00, or 0.8%. Palladium was $537.00 an ounce for an increase of $16.00, or 3.1%.

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