Gold Prices Over $1400, Bullion Silver Eagles Top 9 Million

by Bullion Prices Staff on February 22, 2011

Gold futures prices returned to above $1,400 an ounce Tuesday following a day of silence in the New York market as a result of the American holiday on Monday.

Continued uneasiness over the unrest in the Middle East and North Africa lifted the appeal of gold and silver as investors preferred safe-haven options.

April gold futures prices rose $12.50, or 0.9%, to settle at $1,401.10 an ounce on the Comex division of the New York Mercantile Exchange. That was about mid-way between its intraday low of $1,390.10 and its high of $1,411.50.

"Both gold and the U.S. dollar are seeing safe-haven buying interest amid the instability in the Middle East. Protesting turned into violence in Libya Monday with the situation there seeing long-time dictator Moammar Gadhafy on the verge of being overthrown," noted Jim Wyckoff of Kitco News.

"Crude oil futures prices have spiked higher and back above $95.00 a barrel as Libya is a major oil exporter and is a member of the OPEC cartel. Look for gold prices to continue to be underpinned by the turmoil in the Middle East, and especially if crude oil prices push still higher in the near term."

March silver surged to $32.86 an ounce, marking a gain of 56.6 cents, or 1.8%. It was the highest closing point for the metal since 1980.

"Silver is still relatively attractive compared to gold," James Dailey, who manages about $200 million at TEAM Financial Asset Management LLC in Harrisburg, Pennsylvania, was quoted on Bloomberg. "The more volatile the metal, the better it’s going to perform."

Palladium and platinum were pushed significantly lower Tuesday. March palladium fell $52, or 6.1%, to $805.70 an ounce and April platinum lost $57, or 3.1%, to $1,786.30 an ounce.

U.S. Mint American Silver Eagles were the only bullion coins to show gains Tuesday, according to Mint published sales data. Their numbers surged, however. The bullion Silver Eagles topped 9 million for the year after rising 777,000 for the day.

Daily, February and 2011 bullion coin sales figures follow:

2011 U.S. Mint Bullion Coin Sales
1 oz American Gold Eagle 58,500 0 189,000
1/2 oz American Gold Eagle 5,000 0 6,000
1/4 oz American Gold Eagle 16,000 0 18,000
1/10 oz American Gold Eagle 100,000 0 120,000
American Silver Eagle 2,599,500 777,000 9,021,500

Figures above are in coins, not ounces sold.

In London bullion prices, the PM gold fix was $1,401 an ounce as compared to PM fixing price of $1,403 on Monday.

The London silver fix declined 54 cents, or 1.6%, to $32.89 an ounce.

PGM London metal prices, like in New York, fell the most in dollar terms. Palladium lost $22, or 2.6%, with a fix of $836 an ounce and platinum declined $26, or 1.4%, at $1,821 an ounce.

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