Gold Prices Retreat, Silver Rises, Bullion Coins Delayed

by Bullion Prices Staff on December 7, 2010

Bullion prices were mixed on Tuesday, with silver rising slightly as other precious metals declined. Gold prices dipped 0.5% as the U.S. dollar rebounded and sellers made an appearance to earn profits. The metal had actually hit a fresh high of $1,432.50 an ounce earlier in the day.

New York gold futures prices for February delivery lost $7.10 to close at $1,409 an ounce.

"Traders rang the cash register and took some profits in gold when the U.S. dollar index rebounded from its early lows. Still, the overall technical and fundamental posture of the gold market remains fully bullish," wrote Jim Wyckoff of Kitco News.

"The U.S. dollar index rebounded from lower price levels as the session wore on Tuesday. The index was supported by higher U.S. Treasury yields due to agreement being reached between the Obama administration and Republicans, regarding tax cuts. The dollar index is in a four-week-old price uptrend on the daily bar chart," added Wyckoff.

Gold’s lowest point of the day was at $1,396.70 an ounce. Gold prices are 28.5% higher in 2010.

Silver futures prices for March delivery settled at $29.78 an ounce, rising 4.2 cents or 0.1%. Silver is up 76.8% this year.

In PGM futures, March palladium prices closed at $738.70 an ounce for a loss of $12.70, or 1.7%, and January platinum prices ended at $1,705.20 an ounce, down $8.40, or 0.5%. The metals are up 80.7% and 15.9%, respectively, in 2010.

In bullion coin news, the U.S. Mint halted the Monday release of the new five ounce America the Beautiful Silver Bullion Coins. The Mint was hearing consumer pricing complaints:

“The United States Mint is aware of reports of concern by many consumers about the high prices and premiums being charged in the market for the newly released America the Beautiful Silver Bullion Coins,” said US Mint spokesman Michael White via CoinNews.net.

“We are evaluating these reports and collecting information in order to assess the appropriate course of action to make certain that our customers are best served in the distribution of the coins, and to ensure the widest possible availability, accessibility and affordability of these coins.”

The Mint does not sell any bullion coins directly to the public, but instead relies on a group of authorized dealers to resell them.

No timetable has been offered as to when the new coins will now be issued. For more information, read America the Beautiful Silver Bullion Coins Delayed from sister site SilverCoinsToday.com.

Other U.S. Mint bullion coin activity has been slow in the first week of December. American Eagle Gold and American Eagle Silver coin purchases are down significantly, according to the latest stats.

December 2010 US Mint Bullion Coin Sales
  December 2010 Daily Gain 2010 Totals
American Buffalo Gold Sold Out 209,000
1 oz American Gold Eagle 4,500 0 1,089,000
1/2 oz American Gold Eagle 0 0 45,000
1/4 oz American Gold Eagle 0 0 60,000
1/10 oz American Gold Eagle 0 0 385,000
American Silver Eagle 417,000 0 33,307,500

 

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

In earlier bullion prices, the London PM gold fixing price was $1,420 an ounce, which was higher by $4.75, or 0.3%, from Monday. Silver was fixed at $30.50 as compared to the previous PM fixing of $29.60. In PGM metals, palladium was $769.50 an ounce for a gain of $10.50, or 1.4%, and platinum was up $7, or 0.4%, to $1,724.

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