Gold Prices Hit Record, Fractional American Eagles Arriving – June 8, 2010

by Bullion Prices Staff on June 8, 2010

U.S. gold prices reached a new record on Tuesday, driven by worries over European debt and fears of a double-dip recession.

"Comex gold futures scored another fresh all-time record high Tuesday, as investors continue to seek out the precious yellow metal as a safe-haven asset amid heightened financial, economic and geopolitical uncertainty," noted Jim Wyckoff of Kitco News. "One market watcher in a wire service report summed up nicely gold’s recent price action, saying ‘it’s a warm blanket on a cold day’."

In New York precious metals prices, August gold ended at $1,245.60 an ounce which was the highest level since the $1243.10 price reached on May 12, 2010. For the day, the yellow metal climbed $4.80 or 0.4%. Its high was $1,254.50 while its low hit $1,238.50.

"Clearly, there’s a need for safety," Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said on Bloomberg. "All the other markets are supporting gold. The volatility in the equity and forex markets will continue. Gold is the only thing that isn’t losing investors money."

In other metals, July silver closed to $18.477 an ounce, advancing 31.5 cents or 1.7%. July platinum ended at $1,528.80 an ounce, rising $11.50 or 0.8%. September palladium finished at $442.15 an ounce, surging $11.80 or 2.7%.

In London bullion prices, the afternoon gold fix was $1,246.00 an ounce for an increase of $31.00 or 2.6%.

"We see people buying gold for safety. Gold is in effect trading as a currency," Frank Lesh, a broker and analyst at FuturePath Trading in Chicago, was quoted on MarketWatch. "Every couple of weeks you hear about more [sovereign] debt problems from a different country."

In white metals, silver was $18.340 an ounce for a gain of 98 cents or 5.6%. Platinum was $1,516.00 an ounce for a pick up of $16.00 or 1.1%. Palladium was $428.00 an ounce, rising $5.00 or 1.2%.

In other bullion news, the United States Mint will release 2010 fractional American Gold Eagles on Thursday, June 10. The 1 oz size has been available since January 19. Thursday fractional issues will include the 1/2 oz, 1/4 oz and 1/10 oz sizes.

Since these coins are not numismatic/collector versions, they will be sold to U.S. Mint authorized buyers like other bullion coins. These buyers will then resell the coins to the public for a small premium above the current gold price.

Finally, the one ounce American Buffalo Gold did not increase in numbers today, nor did the one ounce American Silver Eagles. However, one ounce bullion American Gold Eagle coins increased from 23,000 to 28,000 for May, reaching 549,500 for the year.

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