Gold Falls Slightly as Silver Tops $20, Bullion Coins Tame

by Bullion Prices Staff on September 8, 2010

U.S. gold prices finished modestly lower Wednesday. Investors’ risk appetite increased as compared to the bout of safety buying that lifted the yellow metal to a record close on Tuesday.

"Comex gold futures prices closed slightly lower Wednesday on some mild profit-taking pressure after prices hit a fresh 10-week high early on," noted Jim Wyckoff of Kitco News. "A slight increase in investor risk appetite also lightly pressured the gold market Wednesday. U.S. stock indexes were firmer and U.S. Treasury yields rose a just bit, to suggest some better demand for riskier assets, compared to the safe-haven investment status of gold." Wyckoff added that "the U.S. dollar index traded weaker Wednesday, on a corrective pullback following strong gains posted on Tuesday," which limited "the downside in gold."

In New York bullion prices, gold futures for December delivery ended at $1,257.50 an ounce, falling $1.80 or 0.1%. Gold hit an intraday low of $1,256.60 an ounce and a high of $1,264.70 an ounce, which was the best price since the record of $1,266.50 was reached on June 21.

Silver for December delivery advanced 9.5 cents or 0.5% to $20.009 an ounce. It reached $20.180 earlier in the day which was the highest level since March 2008.

In PGM metals, October platinum rose $5.90 or 0.4% to $1,562.20 an ounce while December palladium added $3.90 or 0.7% to close at $527.10 an ounce.

In London bullion prices, the gold fix was $1,255.00 an ounce for a loss of $1.75 or 0.1%.

"Given the range of factors conspiring to push gold higher in September, we raise our one-month forecast to $1,300, from $1,230 previously," UBS precious metals strategist Edel Tully said in a report. "We also lift our three-month target to $1,300, from $1,200 previously."

London silver was $20.020 an ounce, gaining 37 cents or 1.9%. Platinum was $1,555.00 an ounce for a loss of $1.00 or 0.1%. Palladium was lower by $6.00 or 1.1%, fixed to $523.00 an ounce.

In bullion coins, published figures from the U.S. Mint show sales declined during the month of August for American Eagles. For articles on the subject, visit sister site and read:

Higher gold and silver prices have not, at least yet, translated into higher bullion sales in September. The following table shows U.S. Mint published sales figures as of Wednesday, September 8:

August 2010 Bullion Coin Sales
September 2010 2010 Totals
American Buffalo Gold 2,500 201,500
American Eagle Gold 1 oz 12,500 817,500
American Eagle Gold 1/2 oz 1,000 35,000
American Eagle Gold 1/4 oz 0 48,000
American Eagle Gold 1/10 oz 5,000 330,000
American Eagle Silver 145,000 23,745,500


Figures above are in coins, not ounces of gold sold.

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