Gold Prices Decline from Record, Bullion Gold Coins Surge

by Bullion Prices Staff on October 7, 2010

A stronger greenback and profit-taking were among cited reasons for U.S. gold prices falling from their record highs. Other precious metals followed the yellow metal, with silver declining the most in percent terms.

"Comex gold prices ended lower, near the session low and scored a technically bearish "outside day" down on the daily chart Thursday, as traders decided to ring the cash register and take some profits ahead of Friday’s key U.S. employment report," noted Jim Wyckoff of Kitco News. "The U.S. dollar index rebounded in morning traded Thursday, and that helped to set off the profit-taking pressure in the gold market. The index saw some short covering and position evening ahead of Friday’s jobs report," added Wyckoff.

In a prediction, Wyckoff states that "a significantly weak jobs report would provide the gold market bulls with still another clue that the Fed will print more dollars in an effort to boost the U.S. economy. A stronger-than-expected jobs report would likely provide at least a temporary lift for the U.S. dollar index and would also be bearish for the gold market."

In New York bullion prices, gold futures for December delivery closed to $1,335 an ounce, falling $12.70 or 0.9%. Its lowest level was $1,326.50 an ounce while it reached up to $1,366 earlier in the day.

Silver for December deliver closed to $22.584 an ounce, falling 45.9 cents or 2%. In PGM metals, platinum ended down $7.00 or 0.4% to $1,705 an ounce while palladium fell $2.55 or 0.4% to $587.10 an ounce.

In London bullion weekly prices, gold was fixed to $1,345 an ounce, which was $1.50 or 0.1% lower. Silver was fixed higher by 46 cents or 2% to $23.38 an ounce. Platinum was $1,723.00 an ounce, up $29 or 1.7%. And palladium was $598.00 an ounce for a gain of $15 or 2.6%.

After standing still Wednesday, United States Mint bullion coin activity increased Thursday with four of five available options rising. The one-ouncers surged the most. The fractional American Gold Eagles also entered the sales table for the first time in October, although the fourth-ounce size is still at zero for the month.

In another update Wednesday, the Mint released the popular 2010-W Gold Eagle Proof Coins. The available sizes are the same as the bullion versions, with the exception of another option to purchase a 4-coin set.

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

October 2010 US Mint Bullion Coin Sales
October 2010 Thursday Gain 2010 Totals
American Buffalo Gold Sold Out 209,000
1 oz American Gold Eagle 35,000 24,000 922,500
1/2 oz American Gold Eagle 1,000 1,000 37,000
1/4 oz American Gold Eagle 0 0 54,000
1/10 oz American Gold Eagle 10,000 10,000 365,000
American Silver Eagle 750,000 235,000 26,230,500


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

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