Gold Declines First Day in Four, Silver Advances – May 27, 2010

by Bullion Prices Staff on May 27, 2010

U.S. gold prices finished down 0.1% on Thursday as safe haven demand retreated. The decline broke a streak of three days of gains. Other metals, however, advanced with silver at 0.9%, platinum further at 1.5% and palladium the most at 3.7%.

"Investor risk appetite worldwide perked up a little as equity markets rallied," wrote Jim Wyckoff of Kitco News. "With the stable Euro currency and rising U.S. and European stock indexes Thursday, investors’ nerves appeared to calm just a bit as investment monies looked to markets other than the safe-haven assets that include gold, the U.S. dollar and U.S. Treasuries, all of which traded lower."

the Euro currency stabilized and the U.S. dollar index declined. After posting decent gains this week, the gold market on Thursday also paused and consolidated recent price action.

In New York bullion prices, August gold closed to $1,214.40 an ounce for a loss of 90 cents. Gold hit a low of $1,207.40 and a high at $1,220.60.

"With the overseas markets up, you might see a pullback in gold," Marty McNeill, a trader a R.F. Lafferty Inc. in New York, said on Bloomberg. "There are still too many things going on in the world for the real long-term holders to sell gold, though. You still need to protect yourself."

July silver ended at $18.468 an ounce, rising 16.2 cents. July platinum advanced $22.60 to $1,552.90 an ounce. September palladium closed at $465.05 an ounce for a pick up of $16.55.

In London bullion prices, the afternoon gold fix was $1,211.00 an ounce for a loss of $1.00, or 0.1%.

"It looks quite solid, the rally in gold," Deutsche Bank’s head of commodity research, Michael Lewis, was quoted on Reuters. "We still feel market disruption risk is something we’re going to see quite frequently now over the next year. There are a number of factors we would highlight as risks, which could be quite beneficial for gold."

In other metals, silver was $18.360 an ounce for a 9 cent or 0.5% increase. Platinum was $1,535.00 an ounce, up $2.00 or 0.5%. Palladium was $455.00 an ounce, gaining $8.00 or 1.8%.

In a bullion item, gold and silver American Eagles are setting records. For the latest new which include the most recent United States Mint coin sales, read Bullion Gold Eagles Reach 1999 Highs.

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