Gold Ends at Record Price, Bullion American Eagles Unchanged

by Bullion Prices Staff on September 7, 2010

U.S. gold prices hit a record on Tuesday while other precious metals fell — silver and platinum just slightly.

Gold was lifted, opined analysts, on a Wall Street Journal report that raised fresh concerns over European banks and their debt. The previous gold record was set on June 18 following weeks of worry over the European debt crisis, which eventually faded into the background… until this week.

"Gold saw safe-haven buying support emerge Tuesday due to renewed worries about the European Union’s economy and its financial system," noted Jim Wyckoff of Kitco News. "A report in the Wall Street Journal questioned the viability of the stress tests that were conducted on EU financial institutions recently. That pressured the Euro currency and boosted the U.S. dollar index, as the greenback is also considered a safe-haven investment asset, along with gold and U.S. Treasuries."

In New York bullion prices, gold futures for December delivery closed to $1,259.30 an ounce, rising $8.20 or 0.7%. Gold’s intraday low was at $1,246.40 an ounce while its high reached to $1,261.60 an ounce.

In other metals prices, silver for December delivery was down 3.5 cents or 0.2% to $19.914 an ounce while October platinum declined $4.80 or 0.3% to $1,556.30 an ounce, and December palladium fell $8.25 or 1.6% to to $523.20 an ounce.

In London bullion prices, the gold fix was  $1,256.75 an ounce for a pick up of $7.75 or 0.6%. Silver was $19.650 an ounce for a loss of 21 cents or 1.1%. In PGM metals, platinum was $1,556.00 an ounce for a loss of $6.00 or 0.4% while palladium was unchanged at $529.00 an ounce.

"We expect demand for palladium in auto catalytic converters to outpace platinum demand in a recovery as vehicle growth favors palladium-intensive regions — the U.S. and emerging markets over Europe," Morgan Stanley said in a research note cited on Reuters.

In news from the United States Mint and on the topic of gold, bullion one-ounce 2010 American Gold Eagles have been available since January 19 while bullion fractional 2010 American Gold Eagles have been available since June 10. On Tuesday, the U.S. Mint confirmed that it has started to produce 2010 proof Gold Eagles. These are the collector versions of the coins — the same ones that were canceled in 2009 as a result of the demand and production prioritization placed on the bullion eagles. The Mint expects that it will release the one-ounce, half-ounce, quarter-ounce and tenth-ounce 2010 Proof Gold Eagles around mid-October.

In bullion coins, there are no new published updates to their sales figures. The American Silver Eagles continue to show zero for sales during the month of September. An update from the Mint across all of its bullion coins is expected on Wednesday.

The companion coins to the bullion versions are expected out in mid-October. The 22 karat gold pieces will be issued in four sizes, ranging from a tenth-ounce to one ounce.

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