Gold Prices Rise, Bullion Coins Rebound

by Bullion Prices Staff on August 24, 2010

U.S. gold climbed Tuesday, lifted by safe-haven buying driven by a report released earlier in the day showing that existing home sales in the U.S. plunged, and far further than expected.

"The gold market came roaring back from early profit-taking selling pressure Tuesday, to close higher and nearer the session high. Bargain-hunting traders bought the early dip in gold prices, and fresh safe-haven buying interest entered the market on some more dour U.S. economic data," wrote Jim Wyckoff of Kitco News.

"The U.S. dollar index sold off quickly Tuesday morning when it was reported that existing U.S. home sales dropped by a record amount for the month of July–down 27%, which was twice the drop analysts had expected. Gold immediately rallied on bargain buying and safe-haven buying as the greenback declined."

In New York bullion prices, gold futures for December delivery was $1,233.40 an ounce, rising $4.90 or 0.4%. The yellow metal had a low intraday price of $1,211.70 and a high of $1,237.50.

"There’s an overall crisis in confidence in the U.S. recovery, so investors are adjusting their positions in commodities," Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago, said and was quoted on Bloomberg. "The flight-to-quality crowd is jumping on gold."

In other metals prices, silver for September delivery was $18.378 an ounce for a gain of 38.6 cents or 2.1%. October platinum was $1,517.70 an ounce, advancing $9.10 or 0.6%. And palladium for September delivery was $484.25 an ounce for an increase of 55 cents or 0.1%.

In London bullion PM prices, gold was fixed to $1,222 for a loss of $4 or 0.3%. Silver was $17.880 an ounce, dropping 6 cents or 0.3%. In PGM metals, platinum was $1,494 an ounce for a loss of $16 or 1.1% while palladium was $476 for a loss of $4 or 0.8%.

United States Mint bullion coins remained unchanged Tuesday, but jumped Monday with increases that were higher than all of those reported for last week. 1 oz Buffalo Gold coins advanced 5,000, 1 oz American Gold Eagles gained 10,500 and American Silver Eagles rallied 550,000.

The following table shows U.S. Mint published sales figures as of Tuesday, August 24, 2010:

August 2010 Bullion Coin Sales

August 2010 2010
American Buffalo Gold 23,000 15,000 198,500
American Eagle Gold 1 oz 147,500 37,500 803,500
American Eagle Gold 1/2 oz 2,000 1,000 34,000
American Eagle Gold 1/4 oz 2,000 0 46,000
American Eagle Gold 1/10 oz 30,000 15,000 325,000
American Eagle Silver 2,981,000 1,656,000 22,805,500


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

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