Gold Prices End Higher, but Silver Plunges for Second Day – May 5, 2010

by Bullion Prices Staff on May 5, 2010

U.S. gold prices closed slightly higher on Wednesday after declining the most in two weeks. The yellow metal gained even as the U.S. dollar rallied and oil fell — situations that tend to be bearish for gold. Safe-haven buying was a factor as concerns widened over the euro zone debt crisis.

"Comex gold futures closed higher and nearer the session high Wednesday, as the bulls once again took advantage of a downside price correction to do some bargain hunting and ‘buy the dip’. Prices had been under moderate selling pressure early due to a stronger U.S. dollar index and lower crude oil futures prices," wrote Jim Wyckoff on Kitco News.

In New York precious metals prices, June gold rose $5.80, or 0.5%, to $1,175.00 an ounce. Its low point was $1,156.20 while its high reached $1,177.70.

"Investors have no alternative but to put their money in dollars and gold," Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida, said on Bloomberg.

In white metals, July silver ended down 30.8 cents, or 1.7%, to $17.534 an ounce. July platinum lost $36.20, or 2.1%, to $1,649.60 an ounce. June palladium stepped back $6.70, or 1.3%, to $508.55 an ounce.

"The market is so uneasy right now because the news coming out of the European Union continues to be contradictory," Michael Daly, gold specialist at futures broker PFGBest said via Reuters. "People are moving from the fiat currencies into the hard safe-haven asset which is gold."

In London bullion prices, the afternoon gold fix was $1,165.00 an ounce for a decline of $20.00, or 1.7%. Silver ended at $17.630 an ounce, plunging $1.08, or 5.8%.

In other metals, platinum settled to $1,636.00 an ounce, retreating $76.00, or 4.4%. Palladium was $493.00 an ounce, dropping $36.00, or 6.8%.

In a coin item of the day, the U.S. Mint this year will issues a new series of coins named America the Beautiful Silver Bullion Coins. Click on the link to visit a sister site and learn about the new bullion series.

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