Gold Prices Above $1340, Silver Nears $23

by Bullion Prices Staff on October 5, 2010

U.S. bullion prices surged on Tuesday, with gold again setting another record and silver reaching its best level since September 1980. A plunging dollar was attributed to gains.

"The U.S. dollar index careened lower Tuesday as the Euro currency strengthened following some upbeat manufacturing data coming out of the European Union," noted Jim Wyckoff of Kitco News. "Investors worldwide believe a fresh round of quantitative easing of U.S. monetary policy is in the cards, and that continues to boost the gold market bulls and keep selling pressure on the greenback." Wyckoff added "the Bank of Japan and the Reserve Bank of Australia central banks Tuesday announced they are adopting more stimulative monetary policies", which in turn "bolstered notions of a U.S. monetary policy easing coming soon."

In New York bullion prices, gold futures for December delivery closed to $1,340.30 an ounce, rising $23.50 or 1.8%. The yellow metal hit an intraday low of $1,313.30 and reached as high as $1,342.60.

"When governments are in the business of printing money, gold is going to do well," Matthew Zeman, a metal trader at LaSalle Futures Group in Chicago, said and was quoted on Bloomberg. "More quantitative easing is inevitable at this point for the U.S. The dollar is going to suffer, and gold is going to take out records along the way."

Silver for December delivery ended at $22.737, advancing 70.1 or 3.2% — the best performance of all the precious metals.

In the platinum group metals, January platinum finished to $1,700.70 an ounce, gaining $28.60 or 1.7%, while palladium surged $16.90 or 3.0% to close at $578.20 an ounce.

In London bullion weekly prices, gold was fixed to $1,330.50 an ounce, up $17 or 1.3%. Silver was fixed at $22.24 an ounce for a pick up of 21 cents or 1.0%. In PGM metals, platinum was $1,689 an ounce, rising $22 or 1.3%, and palladium was $569.00 an ounce, adding $4 or 0.7%.

The only United States Mint bullion coin to increase Tuesday was the American Silver Eagle, advancing 25,000. In news for the series, the U.S. Mint on Monday announced it would sale 2010 Silver Eagle Proof coins beginning on November 19, 2010. The 2009 versions were canceled as a result of the enormous demand for the bullion Silver Eagles.

The latest Mint sales figures for bullion coins and their daily increases follow:

October 2010 US Mint Bullion Coin Sales
October 2010 Tuesday Gain 2010 Totals
American Buffalo Gold Sold Out 209,000
1 oz American Gold Eagle 11,000 0 898,500
1/2 oz American Gold Eagle 0 0 36,000
1/4 oz American Gold Eagle 0 0 54,000
1/10 oz American Gold Eagle 0 0 355,000
American Silver Eagle 515,000 25,000 25,995,500


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

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