Gold Prices Rebound to Above $1191/oz; Bullion American Silver Eagles Top 20M – July 20, 2010

U.S. gold rallied Tuesday to overcome earlier losses that brought their prices to an eight-week low. Bargain buying was a major factor in gold’s gain, according to analysts.

"Comex gold futures closed modestly higher and nearer the session high Tuesday, after hitting another fresh two-month low early on. Short covering and fresh bargain-hunting buying interest were featured, noted Jim Wyckoff of Kitco News.

"The U.S. dollar index was firmer Tuesday and the Euro currency was weaker, which did limit buying interest in gold. Just recently, the gold market and the U.S. dollar index have resumed their inverse trading relationship, while gold has also resumed its generally positive correlation with the Euro currency."

In New York precious metals prices, August gold was $1,191.70 an ounce for an increase of $9.80 or 0.8%. The metal’s intraday bottom was $1,175.10 an ounce, its lowest level since May 21. Its high was $1,191.70 an ounce.

"It’s a good time to buy gold while it’s on sale," Matt Zeman, a trader at LaSalle Futures Group in Chicago, was noted on Bloomberg. "For buy-and-hold types of people, fiscal irresponsibility is too widespread to completely trust fiat currencies."

New York silver prices for September delivery ended at $17.693 an ounce, moving up 15 cents or 0.9%.

In PGM metals, October platinum closed at $1,517.80 an ounce for a $4.70 or 0.3% gain while September palladium finished at $451.05 an ounce for an increase of $7.15 or 1.6%.

In London bullion prices, the afternoon gold fix was $1,183.00 an ounce, rising $2 or 0.2%.

"Where there is uncertainty in the market, gold and precious metals seem to benefit the most," Jeff Pritchard, a broker at California-based Altavest Worldwide Trading, was quoted on Reuters.

"(If) we see really good results from the (Euro bank) stress tests, gold will take the biggest hit, but if there is more uncertainty and it creates more foreseeable problems, we could see an extension to this rally in gold," he added.

London silver was $17.55 an ounce for a loss of 23 cents or 1.3%. Platinum was $1,502.00 an ounce for an increase of $3.00 or 0.2%. And palladium was $438.00 an ounce, falling $9 or 2.0%.

U.S. Mint Bullion Eagles, Gold Fractionals and Buffalo Coins Rise

Sales of United States Mint bullion coins advanced across the board since Friday, with the exception of the smallest one-tenth ounce fractional American Gold Eagle. Increases include:

• One-ounce sizes added 12,000 on Monday, and then another 3,000 on Tuesday
• One-half ounce sizes rose 1,000 on Monday
• One-fourth ounce sizes gained 2,000 on Monday

The increases on Monday marked the first time the two middle-sized coins showed any change since June 24.

American Silver Eagles increased 287,500 between Friday and Monday, topping 20 million for the year. Buffalo Gold coins increased by 1,000 on Monday and then added another 1,000 on Tuesday.

The latest sales totals for the month and year follow:

U.S. Mint Bullion Coin July 2010 Sales

	June 2010	July 2010	2010 Total
American Buffalo Gold	33,500	18,000	178,500
American Eagle Gold 1 oz	97,000	80,000	698,500
American Eagle Gold ½ oz	31,000	1,000	32,000
American Eagle Gold ¼ oz	44,000	2,000	46,000
American Eagle Gold 1/10 oz	280,000	30,000	310,000
American Eagle Silver	3,001,000	1,935,500	20,104,000

 

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