Gold Halts Two-Day Slide, Silver; Metals Prices Plunge – May 17, 2010

by Bullion Prices Staff on May 17, 2010

U.S. gold prices rebounded slightly on Monday, halting a two day retreat with most precious metals commentaries citing safe-haven buying as the catalyst for gains. Concern over the global recovery was a common topic as well, which served to pressure industrial metals lower.

"Comex gold futures closed near unchanged on Monday after trading on both sides of unchanged during the session," wrote Jim Wyckoff of Kitco News. "The gold market was supported on continued safe-haven buying moves by investors worldwide. However, profit-taking pressure from recent gains limited the upside Monday."

In New York precious metals prices, June gold closed to $1,228.10 an ounce, rising 30 cents. It ranged from $1,222.5 to $1,242.8.

"Gold has had such a nice run, it’s not unusual to see some money come out of the market," Marty McNeill, a trader at R.F. Lafferty Inc. in New York, was quoted on Bloomberg. "The gold ETFs are a big factor, and they are so crowded on the long side."

July silver closed to $18.859 an ounce, plummeting 36.6 cents, or 1.9%. Platinum for July delivery plunged down to $1,663.20 an ounce, falling $52.20, or 3.0%. June palladium closed to $503.60 an ounce, losing more than other metals by declining $24.30, or 4.6%.

In London bullion prices, the afternoon gold fix was $1,236.00 an ounce for a 50 cent decline.

In Germany, there’s a "panic about the safety of the euro, gold demand from the country has soared, with most German and Austrian gold dealers and banks sold out and struggling to secure new supplies," Martin Hennecke, associate director at Tyche Group Ltd., was quoted on MarketWatch.

London silver was $19.110 an ounce for a loss of 53 cents, or 2.7%. Platinum was $1,692.00 an ounce, moving down $29.00, or 1.7%. Palladium fell $21.00, or 3.9%, to $515.00 an ounce.

In a coin item of the day, last week’s multi-year high silver prices proved to be a boon for United States Mint silver bullion coins. Demand skyrocketed. For more, read the article on sister site CoinNews entitled US Silver Eagle Coin Sales Surge, Nearly Twice Rate.

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