Gold Prices Rebound Toward $1200, Bullion Eagles Unchanged – July 7, 2010

by Bullion Prices Staff on July 7, 2010

New York gold inched higher Wednesday, rising toward $1200 an ounce and above the six-week low reached during the prior session.

"Comex gold futures prices closed higher and near the session high Wednesday as bargain-hunting buying surfaced after prices notched another fresh six-week low early on," noted Jim Wyckoff of Kitco News. "Higher crude oil prices and rallies in other commodity markets also supported buying interest in gold Wednesday."

In New York precious metals prices, August gold was $1,198.90 an ounce for an increase of $3.80 or 0.8%. Gold’s lowest price was $1,185.00, a level not seen since May 24. It’s high for the day was $1,199.30.

"With daily momentum oscillators posting their first oversold readings since March, we look for renewed signs of basing ahead of resumption of the cyclical bull trend, which is still very much intact," Barclays Capital said in a note cited on Reuters. Gold "bulls need to regain the 21-day averages at 997 (euros)/$1,231 to regain control."

In other U.S. metals prices: September silver ended at $18.000 an ounce for a gain of 14.3 cents or 0.8%; October platinum closed at $1,526.40 an ounce for a pick up of 7.70 or 0.5%; September palladium finished at $442.35 an ounce for an increase of $1.95 or 0.4%.

In London bullion prices, the afternoon gold fix was $1,193.25 an ounce for a loss of $1.75 or 0.1%.

"Some will look at the selling as overdone," Matt Zeman, a trader at LaSalle Futures Group in Chicago, was quoted on Bloomberg in regards to gold’s recent fall of over 5% since gold peaked at $1,266.50 on June 21. "A lot of technical damage has been done. In the short term, there are oversold conditions."

London silver was $17.65 an ounce for a loss of 20 cents or 1.1%. In PGM metals, platinum was $1,512.00 an ounce, rising $3.00 or 0.2% for a second straight day, while palladium was $439.00 an ounce for an increase of $7.00 or 1.6%.

In a recap of yesterday’s coin news, US Mint June 2010 Bullion Eagle Sales fell from their pace in May, but are on fire when placed into the perspective of typical summer month performances. In ounces of gold and silver sold during the month, American Gold Eagles jumped 151,500, American Buffalo Gold pieces added 33,500, and American Silver Eagles soared 3,001,000. The 2010 silver bullion coins are looking to top their record 2009 sales of 28.7+ million. They are already above 19 million for the year.

Below are the latest bullion totals as published by the Mint. No new sales were reported between Tuesday and Wednesday.

U.S. Mint Bullion Coin July 2010 Sales

American Buffalo Gold 33,500 2,500 163,000
American Eagle Gold 1 oz 97,000 26,500 645,000
American Eagle Gold ½ oz 31,000 0 31,000
American Eagle Gold ¼ oz 44,000 0 44,000
American Eagle Gold 1/10 oz 280,000 0 280,000
American Eagle Silver 3,001,000 875,500 19,044,000


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

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