U.S. gold prices closed to another fresh record Tuesday, the eigth in the last nine days. Lackluster consumer confidence numbers and a declining dollar, which hit its lowest point since February, were attributed to gains that lifted gold to above $1,300 an ounce.
"After an early profit-taking setback in gold, bargain-hunters stepped in to "buy the dip" as the U.S. dollar index weakened further following some more dour U.S. economic data, wrote Jim Wyckoff of Kitco News.
"The U.S. dollar index hit a fresh eight-month low Tuesday morning, after having stabilized for just a bit, when the U.S. consumer confidence index was released and showed a significantly weaker-than-expected reading," Wyckoff added. "Safe-haven buying interest in gold also quickly surfaced following the consumer confidence report’s release."
In New York bullion closing prices, December gold futures closed to $1,308.30 an ounce for a pick up of $9.70 or 0.7%. Gold’s lowest price was $1,276.20 an ounce while it reached an intraday high of $1,311.80 an ounce.
In other metals, silver for December delivery closed to $21.707 an ounce, gaining 23.6 cents or 1.1%. January platinum rose $5.70 or 0.3% to $1,640.70 an ounce. December palladium finished at $560.45 an ounce, rising $8.25 or 1.5%.
In London bullion prices, the gold PM Fix was $1,294 an ounce for a loss of $3 or 0.2%. Silver was $21.165 an ounce, 38 cents or 1.7% lower than Monday. In PGM metals, platinum was $1,614 an ounce for a loss $20 or 1.2% while palladim declined $6 or 1.1% to $552.00 an ounce.
Record gold and 30-year high silver prices have raised the demand for gold and silver bullion coins from the United States Mint. The bullion Buffalo coins sold out, as the Mint’s allocated 2010 inventory is gone and there are no plans to produce more this year. The 1-ounce sizes of the Gold and Silver Eagles raced Tuesday, with respective sales increases of 15,000 and 460,000. Fractional Gold Eagles remained unchanged. The latest bullion figures from the Mint follow:
|September 2010 US Mint Bullion Coin Sales|
|American Buffalo Gold||10,000||209,000|
|American Eagle Gold 1 oz||73,000||878,000|
|American Eagle Gold 1/2 oz||1,000||35,000|
|American Eagle Gold 1/4 oz||2,000||50,000|
|American Eagle Gold 1/10 oz||20,000||345,000|
|American Eagle Silver 1 oz||1,680,000||25,280,500|
Figures above are in coins, not ounces of gold sold.