Gold Prices Retreats 1.1%, Silver Rises – May 18, 2010

by Bullion Prices Staff on May 18, 2010

U.S. gold declined Tuesday with prices falling 1.1% after safe-haven buying faded and the euro fell to a four-year low against the greenback. Support for the metal was still cited, however.

"Comex gold futures closed lower and nearer the session low Tuesday, on profit-taking pressure from recent gains," wrote Jim Wyckoff of Kitco News. "Increased risk appetite in the marketplace through most of the day Tuesday did pull some bullish traders away from the gold market."

In New York precious metals prices, June gold closed to $1,214.60 an ounce for a loss of $13.50. It ranged from $1,206.60 to $1,226.8.

Uncertainties over the fiscal situation and the future of the euro zone are likely to continue to affect investors’ willingness to maintain the current share of euro denominated assets in their portfolios, Bank of America-Merrill Lynch said in a report that was summarized on MarketWatch. "We believe that gold may be one asset benefiting from this trend. Hence, we reinforce our medium-term gold target of $1,500," the bank said.

In white metals, July silver closed to $18.879 an ounce for an increase of 2 cents, or 0.1%. July platinum ended at $1,690.50 an ounce, surging $27.30, or 1.6%. And June palladium closed to $507.00 an ounce, rising $3.40, or 0.7%.

In London bullion prices, the afternoon gold fix was $1,216.75 an ounce for a decline of $19.25, or 1.6%.

"Risk appetite improved a tad and the quest for safe-havens turned somewhat muted following a bounce in European stock markets," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "Indian gold prices fell once again overnight as ultra-high bullion prices kept would-be buyers from doing that which their German counterparts have been doing for several days; cleaning out the local gold shop."

Silver was $18.820 an ounce, falling 29 cents, or 1.5%. Platinum was $1,681.00 an ounce, declining $11.00, or 0.7%. Palladium was $507.00 an ounce, ending down $8.00, or 1.6%.

In a coin item of the day, American Silver Eagle Coins continue to soar in sales. The bullion coins are nearing 14 million — already at an all-time high for the first five months of a year. Today the .999 fine silver coins moved up another 74,500 to reach 2.456 million for May. For more information about the silver pieces, click the link to visit a sister site about them.

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