Gold Prices Drop for Second Straight Week, Metals Plunge

by Bullion Prices Staff on July 3, 2010

Gold edged higher on Friday but ended its worst week in six as steep declines across all metals prices were attributed to concerns over the pace of the global recovery and jitters of a double-dip recession in the U.S. New York gold for August delivery rose $1, or 0.4%, to end at $1,207.70 an ounce, dropping $48.50, or 3.9% for the week.

"The U.S.-led global economic recovery seems to be hitting bigger barricades and this worry must support gold," Pradeep Unni, senior analyst at Richcomm Global Services, was quoted on Reuters. "If stocks stabilize, then expect the slow steady rise in gold."

In additional New York precious metals weekly prices, September silver closed to $17.703 an ounce, diving $1.407 or 7.4%. In PGM metals, October platinum settled to $1,503.60 an ounce, falling $66.80 or 4.3% while September palladium finished at $426.90 an ounce for a loss of $51.00 or 10.7%.

"We’re not ready to write the epitaph for gold just yet," James Cordier, a portfolio manager at Optionsellers.com in Tampa, Fla., was quoted on MarketWatch. "Gold was getting into a very crowded space" and the week’s correction was a relatively welcomed, he added.

In London bullion weekly prices, the gold fix was $1,201.50 an ounce for a loss of $52.50 or 4.2%.

"People are still considering gold as a safe haven," Bernard Sin, the head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, was quoted on Bloomberg. "Europe is still not in a good shape, and the U.S. is still not in a good shape."

The London silver prices was $17.980 an ounce for a weekly loss of 67.0 cents or 3.6%. And in weekly PGM prices, platinum was $1,508.00 an ounce, bringing it down $48.00, or 3.1%, while palladium was $433.00 an ounce for a fall of $38.00 or 8.1%.

To follow are silver, gold, platinum and palladium performance tables for the last several weeks.

London Fix Weekly Bullion Prices – July 2010

(June 25 – July 2)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-3.6%
-$0.67
$17.980
Gold
 
X
-4.2%
-$52.50
$1,201.50
Platinum
 
X
-3.1%
-$48.00
$1,508.00
Palladium
 
X
-8.1%
-$38.00
$433.00

Weekly U.S. Gold Coin News

In related news, the following link provides information on the latest United States Mint bullion and numismatic gold and silver coin sales figures:

  • US Mint Sales: Smallest 2010 Fractional Gold Eagles Favored
    Of all the 2010 Fractional American Gold Eagle bullion coins, the smallest and most affordable 1/10 ounce size is the most popular.

    The new fractional Gold Eagles were released on June 10, 2010 and enjoyed robust five-day debuting sales of 310,000. Last week’s U.S. Mint sales report showed they improved to 340,000.

    Not much has changed since as only 15,000 more were purchased, bringing their tally to 355,000. In fact, the 1/4 ounce and 1/2 ounce sizes have remained frozen since last Thursday — the 15K came from the 1/10 ounce eagles, which now account for 78.9% of all fractional sales. Their 280,000 total surpassed the 260,000 sold in 2008 and in 2009…

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