Gold Hits New Record as Silver Prices Top $23, Bullion Coins Unchanged

by Bullion Prices Staff on October 6, 2010

Gold rose $7.40 Wednesday to reach yet another all-time high. It climbed when the U.S. dollar fail toward a nine-month low as concern over the U.S. economy, and employment in particular, became a topic of the day.

"More weakness in the U.S. dollar had investors once again seeking gold," noted Jim Wyckoff of Kitco News. "The U.S. dollar index had been trading near steady Wednesday morning, but then wilted and hit another fresh 8.5-month low when the ADP jobs report showed private-sector U.S. jobs fell by 39,000 last month. Analysts had forecast that report to show a gain of 20,000 jobs in September."

Wyckoff added that "most agree gold’s latest surge has been due in major part to the slumping U.S. currency, as many investors believe a fresh round of quantitative easing of U.S. monetary policy is imminent, possibly as soon as early November."

In New York bullion prices, gold futures for December delivery closed to $1,347.70, rising 0.6%. Its lowest level of the day was $1,340. Gold reached a high of $1,351.00.

Silver for December delivery settled to $23.043 an ounce, advancing 30.6 cents or 1.3%. In PGM metals, January platinum was $1,712 an ounce for a pick up of $11.30 or 0.7% while December palladium was $589.65 an ounce, up $11.45 or 2%.

In London bullion weekly prices, gold was fixed to $1,346.50 an ounce, which was a gain of $16 or 1.2%. Silver was fixed higher by 68 cents or 3.1% to $22.920 an ounce. In PGM metals, platinum was $1,694 an ounce for an increase of $5 or 0.3% and palladium was $583 an ounce for an increase of $14 or 2.5%.

"Gold and other precious metals still appear to be on an unstoppable high run," Commerzbank analysts told its clients. "The present momentum suggests that prices will continue rising in the near term."

The United States Mint did not report any new sales of its bullion coins on Wednesday. However, bullion American Gold Eagle and bullion American Silver Eagle numbers for September are available. For reports on their performances during the month, read the articles:

 

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