Gold Prices Rally to New Record, Bullion Eagles Advance

by Bullion Prices Staff on September 21, 2010

U.S. gold prices surged to a new record in late electronic trading after a closely-watched meeting of the Federal Reserve’s monetary policy committee said core inflation was below preferred levels, indicating it was "prepared to provide additional accommodation if needed to support the economic recovery and to return inflation."

Prior to the release of the Fed statement, precious metals prices closed with declines across the board. After, gold shot up $15.80 and was last at $1,290.10 an ounce.

"I think the gold bulls really got what they wanted from this Fed policy statement," Bill O’Neill, partner at LOGIC Advisors in Upper Saddle River, New Jersey, said and was quoted on Reuters. "Even though there’s no fear of inflation, they actually showed a fear for deflation, which is also bullish for gold as it creates uncertainties. It looks like we are onward and upward to $1,300."

Silver was 34 cents higher to $20.980. Platinum was up $11.50 to $1,623.90. Palladium was higher by $5.90, resting at $535.95.

In New York bullion closing prices, gold futures for December lost $6.50 or 0.5% to $1,274.30. Its intraday low was $1,272.00 an ounce while its high was $1,292.40.

In other closing metal prices, silver for December delivery declined 16.3 cents or 0.8% to $20.640 an ounce. October platinum was $1,612.40 an ounce for a loss of $19.60 or 1.2%. And December palladium $530.05 an ounce, down $11.80 or 2.2%.

In London bullion prices, the gold PM Fix was $1,275.00 an ounce, falling $4.25 or 0.3%. Silver was $20.760 an ounce for a loss of 15 cents or 0.7%. Platinum was $1,615.00 an ounce, down $1 or 0.1%. Palladium was $530.00 an ounce for a loss of $6 or 1.1%.

In United States Mint bullion coin news, one-ounce gold and silver American Eagles jumped soundly in starting the week. One-ounce Gold Eagle sales are up 15,500 from Friday while Silver Eagles advanced 655,000.

The following table shows the latest figures across all the Mint’s bullion coin products.

September 2010 US Mint Bullion Coin Sales
September 2010 2010 Totals
American Buffalo Gold 7,000 206,000
American Eagle Gold 1 oz 50,500 855,500
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 15,000 340,000
American Eagle Silver 1,045,000 24,645,500


Figures above are in coins, not ounces of gold sold.

The U.S. Mint sells bullion coins only to authorized dealers. These dealers and other sellers of silver, gold and other precious metals coins could see new regulations should proposed coin and precious metals dealer regulations become law. Congressman Anthony Weiner (D-N.Y.) introduced the legislation in the U.S. House on September 16, 2010. For more information about the Coin and Precious Metal Disclosure Act, click on the link above.

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