Gold Hits 5th Straight Record, Silver Hurdles $21

by Bullion Prices Staff on September 22, 2010

U.S. gold prices continued their upward thrust on Wednesday, nearly touching $1,300 an ounce and registering a fresh record for a fifth straight day. The dollar was pressured and gold resultantly lifted after the release of the Federal Reserve’s statement, which noted lower than desired inflation and signaled a willingness to further monetary easing.

Comex gold futures prices ended solidly higher and near the middle of the day’s trading range Wednesday," noted Jim Wyckoff of Kitco News. "Gold is seeing strong buying support from a slumping U.S. dollar index."

Wycoff added that the "U.S. dollar has been hit hard by Tuesday’s Federal Open Market Committee meeting statement from the Federal Reserve. While the Fed did not specifically detail quantitative easing measures, most analysts said the statement strongly suggests such due to the very accommodative stance of the Fed, amid a still-anemic U.S. economy. Fresh quantitative stimulus from the Fed, which basically means increasing the U.S. money supply by buying of U.S. securities by the Fed, is significantly dollar-bearish."

In New York bullion closing prices, gold futures for December was $1,292.10 an ounce, soaring $17.80 or 1.4%. The yellow metal reached a low of $1,287.50 an ounce and a high of $1,298.00 an ounce.

Silver for December delivery closed at $21.055 an ounce, jumping 41.5 cents or 2.0%. October platinum ended up $20.50 or 1.3% to $1,632.90 an ounce. December palladium was $541.90 an ounce for an increase of $11.85 or 2.2%.

In London bullion prices, the gold PM Fix was $1,293.50 an ounce for an increase of $18.50 or 1.5%.

"Possible quantitative easing continues to put a significant weakening into the dollar," Frank McGhee, head precious metals trader at Chicago-based Integrated Brokerage Services, said and was quoted on Reuters. "You’re seeing the euro and gold rally together for the first time in a long time. So, the inverse relationship between gold and dollar may be finally reasserting itself."

Silver was $21.080 an ounce, rising 32 cents or 1.5%. Platinum was $1,662.00 an ounce, gaining $47 or 2.9%. Palladium was $543.00 an ounce, $13 or 2.5% higher.

In U.S. Mint bullion coin sales on Wednesday, the 1 oz Gold Eagle rose by 3,000 and the 1 oz Buffalo Gold climbed by 1,500. Fractional Gold Eagles and the American Silver Eagle remained unchanged. The following table shows the latest sales figures across all the Mint’s bullion coin products.

September 2010 US Mint Bullion Coin Sales
September 2010 2010 Totals
American Buffalo Gold 8,500 207,500
American Eagle Gold 1 oz 53,500 858,500
American Eagle Gold 1/2 oz 1,000 35,000
American Eagle Gold 1/4 oz 2,000 50,000
American Eagle Gold 1/10 oz 15,000 340,000
American Eagle Silver 1,045,000 24,645,500


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

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