Gold Prices Near $1250, America Bullion Eagles Rise – June 24, 2010

by Bullion Prices Staff on June 24, 2010

U.S. gold prices rallied on Thursday, falling 50 cents shy of $1,250 an ounce at its highest level. By day’s end, the yellow metal pared a few dollars worth of gains but still finished at its highest price since Friday, June 18.

"Comex gold futures prices closed higher and near the session high Thursday, and were supported by traders once again stepping in to buy weaker prices that were seen in earlier trading," noted Jim Wyckoff of Kitco News.

"One important factor for which to take note this week is the rise in U.S. Treasury bond and note prices to fresh multi-month highs. This suggests traders and investors are moving to a posture of reducing risk appetite, which also means safe-haven buying interest in gold. The U.S. Treasury market does hint that gold will remain well supported on any price dips and that a market top in gold is still pending," added Wyckoff.

In New York precious metals prices, August gold was $1,245.90 an ounce, gaining $11.10 or 0.9%. Intraday prices ranged from a low of $1,228.00 an ounce to a high of $1,249.50 an ounce. July silver closed to $18.736 an ounce, rising 27.7 cents or 1.5%.

"There is a total lack of confidence in fiat currencies. So, people chose to take money to safer haven which is primarily gold and silver, which tend to do better than most other commodities in retaining their value in times of crisis," Michael Daly, gold specialist at Chicago-based futures broker PFGBest, was quoted on Reuters.

Other U.S. metals futures prices declined. July platinum ended down at $1,561.50 an ounce, falling $5.50 or 0.4%. September palladium finished at $470.00 an ounce, retreating $4.35 or 0.9%.

In London bullion prices, the afternoon gold fix was $1,236.25 an ounce for a pick up of $9.75 or 0.8%.

"There’s no good reason not to own gold," Matt Zeman, a metals trader at LaSalle Futures Group in Chicago, was noted on Bloomberg. "We’re seeing the flight-to-safety bid come back in."

London silver was $18.380 an ounce for a loss of 53 cents or 2.8%. Platinum was $1,549.00 an ounce, ending lower by $26.00 or 1.7%. And palladium was $466.00 an ounce for a loss of $19.00 or 3.9%.

In bullion coins, the United States Mint released new sales figures Thursday morning which showed across-the-board gains from Wednesday. Sister site CoinNews provides a more detailed analysis which may be read at Bullion Coins Reach for Records. The latest totals follow:

U.S. Mint Bullion Coin Sales in June

June 2010 2010 Total
American Buffalo Gold 31,500 158,500
American Eagle Gold 1 oz 79,500 601,000
American Eagle Gold ½ oz 31,000 31,000
American Eagle Gold ¼ oz 44,000 44,000
American Eagle Gold 1/10 oz 265,000 265,000
American Eagle Silver 2,533,500 17,701,000


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