Gold Prices Log Weekly Gain Despite Fed, Bullion US Silver Coins Up

by Bullion Prices Staff on May 25, 2013

U.S. gold prices advanced 1.6% this week despite the precious metal falling in more days than rising. The turnaround snaps a two-week losing streak. Silver also ended higher than a week ago with an accumulated increase of 0.6%. Other metals were lower with weekly declines of 1.8% for palladium and 1.1% for platinum.

On Friday, gold prices for June delivery edged down $5.20, or 0.4%, to $1,386.60 an ounce on the Comex division of the New York Mercantile Exchange. Two days of very strong gains were realized on Monday and Thursday when the dollar fell against other world currencies. Gold prices were pressured this week on worries the Fed would end or lower its quantitative easing sooner than expected. Fed Chairman Ben Bernanke testified before Congress on Wednesday.

"Bernanke in his prepared text before actually speaking to Congress led the market place to believe he is still fully in the dove’s camp and that he wants the present bond-buying program (QE3) to continue in the coming months,"┬áJim Wyckoff, a senior analyst at Kitco Inc, said Wednesday. "However, when asked a question by a member of Congress, Bernanke answered that the bond-buying program could be ‘tapered’ as soon as the next couple of FOMC meetings."

The newest gold surveys are more bullish for gold prices than they were a week ago.

"Worries that the Fed will taper off its asset purchases to stimulate the U.S. economy have hit gold and other markets, and the results of economic data releases will color traders’ perceptions of what the Fed might do with the program," noted Debbie Carlson, also of Kitco.

"Market participants said they’ll also watch to see how the Comex futures market is affected by next week’s option expiration, which could have a short-term impact on prices…

In the Kitco News Gold Survey, out of 36 participants, 28 responded this week. Of those 28 participants, 14 see prices up, while nine see prices down and five see prices moving sideways or are neutral."

In other futures bullion prices in New York on Friday:

  • July silver prices shed 1.2 cents, or 0.05%, to $22.50 an ounce,
  • June palladium prices lost $12.20, or 1.7%, to $726.45 and
  • July platinum prices declined $5.30, or 0.4%, to $1,451.90 an ounce

New York bullion prices by day and the net changes for the week are shown in the following table.

New York Futures – Bullion Prices
  Mon Tue Wed Thurs Fri Weekly Change
Silver Prices $22.58 $22.46 $22.47 $22.51 $22.50 $0.14
Gold Prices $1,384.10 $1,377.60 $1,367.40 $1,391.80 $1,386.60 $21.90
Platinum Prices $1,484.60 $1,458.40 $1,458.40 $1,457.20 $1,451.90 -$16.10
Palladium Prices $750.75 $748.10 $748.10 $738.65 $726.45 -$13.80


Sales of United States Mint Bullion Coins in May

Sales of United States Mint bullion coins were mixed this week with demand higher for silver coins and much lower for gold coins. In looking at and comparing recent bullion sales data:

  • American Eagle bullion gold coins rose 7,000 ounce this week versus the improved 30,000 ounce reported last week. Sales for May are at 52,000 ounces.
  • American Buffalo bullion gold coins increased 2,000 this week, but last week’s total was 6,500 ounces. Sales for the month total 11,000 ounces.
  • American Eagle bullion silver coins gained 866,500 versus the prior weekly total of 833,500. May Silver Eagle sales are 2.6 million.
  • America the Beautiful 5 oz bullion silver coins rose 10,600 compared to the previous 12,700. This year’s first bullion 5 ounce coin featuring White Mountain National Forest was released on May 13. This silver coin article offers a breakdown on how sales have started for it and offers new sales for the companion collector version.

Also this week, the United States Mint cut prices on silver sets as melt values of the silver coins in them have fallen since they were issued.

Bullion coin sales for every day this week and totals for 2013 through to May 24 are shown in the following grid.

Sales of United States Mint 2012 Bullion Coins
  Mon Tue Wed Thurs Fri 2013 Sales
1 oz American Eagle Gold Bullion Coins 2,000 5,000 0 0 0 484,000
1/2 oz American Eagle Gold Bullion Coins 0 0 0 0 0 42,000
1/4 oz American Eagle Gold Bullion Coins 0 0 0 0 0 76,000
1/10 oz American Eagle Gold Bullion Coins* 0 0 0 0 0 300,000
1 oz American Buffalo Gold Bullion Coins 500 1,500 0 0 0 143,000
5 oz America the Beautiful Bullion Silver Coins 0 10,600 0 0 0 86,400
1 oz American Eagle Bullion Silver Coins 611,500 217,500 37,500 0 0 20,910,000


*Sales of the smallest American Eagle gold bullion coin is suspended until the United States Mint replenishes its inventory.

Bullion Prices in London

Bullion prices in London were mixed to unchanged Friday. Lower was silver by 0.4% and palladium by 1.4%. Platinum was flat. Gaining was gold by 0.7%. For the week, only gold climbed. The weekly percent and net changes are listed in the table below.

London Bullion Prices
  Mon Tue Wed Thurs Fri Weekly Change
Silver Prices $21.66 $22.44 $22.62 $22.47 $22.38 -$0.14
Gold Prices $1,354.75 $1,360.75 $1,408.50 $1,380.50 $1,390.25 $21.50
Platinum Prices $1,447.00 $1,456.00 $1,474.00 $1,455.00 $1,455.00 -$15.00
Palladium Prices $734.00 $741.00 $750.00 $739.00 $729.00 -$7.00


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