Gold Prices Fall and Break Record Streak; Silver Tumbles 7.6%

by Bullion Prices Staff on May 3, 2011

US bullion prices retreated across the board Tuesday, with silver leading the way as it tumbled 7.6%. Gold prices followed but at a tamer 1.1% while platinum and palladium retreated the least with respective losses of 0.8% and 0.2%.

June gold prices fell $16.70 to $1,540.40 an ounce on the Comex division of the New York Mercantile Exchange. Gold prices traded as low as $1,516.20 an ounce and as high as $1,551.40 an ounce.

"We are seeing accelerated margin selling in silver … and it’s spilling over into gold and crude oil. When you have big margin selling in one commodity, it has a cascading impact on the markets," Bill O’Neill, partner of New Jersey-based commodity investment firm LOGIC Advisors, was cited on Reuters.

July silver prices dropped $3.50 to $42.59 an ounce, their biggest one-day decline since December 2008. The CME Comex division raised trading margin requirements for the white metal three times in a week.

In PGM futures prices, palladium ended down $1.70 to $782.40 an ounce and platinum closed down $15.20 to $1,860.50 an ounce.

In comparing current to previous London bullion PM fixing prices:

  • Gold rose $4.75, or 0.3%, at $1,540.25 an ounce
  • Silver declined $5.09, or 10.5%, at $43.61 an ounce
  • Palladium fell $2, or 0.3%, at $775 an ounce
  • Platinum advanced $23, or 1.3%, at $1,858 an ounce

Gold bullion was the focus of United States Mint Authorized Purchasers on Tuesday, as sales of all but one American Gold Eagle rose. The latest bullion coin sales figures follow:

2011 United States Mint Bullion Coins
1 oz American Gold Buffalo 0 2,000 60,500
1 oz American Gold Eagle 2,500 13,500 371,500
1/2 oz American Gold Eagle 4,000 10,000 43,000
1/4 oz American Gold Eagle 0 2,000 54,000
1/10 oz American Gold Eagle 5,000 5,000 205,000
5 oz America the Beautiful Silver 0 12,400 237,800
American Silver Eagle 0 654,000 15,902,000

Figures above are in coins, not ounces sold.

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