Gold Falls Toward $1,190; Silver and Other Metals Tumble – May 19, 2010

by Bullion Prices Staff on May 19, 2010

U.S. gold prices on Wednesday retreated toward $1,190 an ounce as profit-taking was again in play. All metals were driven down, with palladium tumbling the most with its 9.3% dive.

"Heavier profit-taking and downside corrective pressure hit Comex gold futures Wednesday as prices dropped below psychological support at $1,200 an ounce," wrote Jim Wyckoff of Kitco News. "Besides the profit taking from recent gains that last week saw a new all-time record high scored in gold, traders were unnerved by news reports and some rumors regarding the European Union, Germany and Greece."

In New York precious metals prices, June gold closed to $1,193.10 an ounce, falling $21.50, or 1.8%. The yellow metal reached an intraday low of $1,186.60, which was the weakest level since May 10, 2010.

In other prices, July silver ended at $18.115 an ounce, dropping 76.4 cents, or 4.0%. July platinum moved to $1,605.70 an ounce, sliding $84.80, or 5.0%. June palladium closed to $459.70 an ounce for a loss of $47.30.

Platinum and palladium markets were overbought, Stephen Platt, an analyst with Archer Financial Services in Chicago was cited on MarketWatch. “Money is moving to the sidelines now given the uncertainty about demand prospects.”

In London bullion prices, the afternoon gold fix was $1,195.00 an ounce for a decline of $21.75, or 1.8%.

"It’s a pause for gold," said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, was quoted on Bloomberg. "The euro has found a little support, so you’re seeing the fear- factor money come out of gold."

Silver was $18.530 an ounce, ending 29 cents or 1.5% lower. Platinum was $1,612.00 an ounce, declining $69.00 or 4.1%. Palladium was $472.00 an ounce, falling $35.00 or 6.9%.

In United States bullion coin sales, American Silver Eagles and the 24-karat American Gold Buffalo showed no movement on Wednesday. Bullion American Gold Eagles, however, jumped 18,000 to reach 110,500 for the month and 442,000 for the year.

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