Gold Prices Rise Slightly, US Gold Fractional Bullion Coin Sales Jump – June 15, 2010

by Bullion Prices Staff on June 15, 2010

U.S. gold prices rose 0.8% Tuesday as a weaker U.S. dollar and continuing concerns over the euro-zone debt crisis were cited catalysts for gold’s gains.

"It doesn’t hurt gold to have a weaker dollar," Matt Zeman, a trader at LaSalle Futures Group in Chicago, said on Bloomberg. "At some point, gold’s inverse relationship to the dollar will return. This rally in the euro will be short-lived, and Europe’s debt issues will keep gold well-supported."

In New York precious metals prices, August gold closed at $1,234.40 an ounce, rising $9.90 to $1,234.40 an ounce.

"Comex gold futures closed higher and near the daily high in quieter dealings Tuesday. On the corrective pullback traders once again stepped in to “buy the dip” in the still solidly uptrending gold market," noted Jim Wyckoff of Kitco News. "The Euro currency was firmer and the U.S. dollar index was weaker, which also added to buying interest in gold as other commodity markets were supported by the weaker greenback."

Gold’s high point for the day was $1,237.00. Its lowest level was $1,221.10.

In white metals, July silver closed to $18.578 an ounce for a gain of 16.7 cents or 0.9%. July platinum was also up 0.9%, rising $14.60 to close at $1,578.00 an ounce. September palladium gained the most in percent terms, surging 2.8% for an increase of $12.95 and a closing point of $475.55 an ounce.

In London bullion prices, the afternoon gold fix was $1,225.00 an ounce for a pick up of $1.25 or 0.1%.

"For the past week or so, the market has been trading in a narrow range of around $1,220, on one hand supported by lingering worries over sovereign debt issues and on the other lacking fresh momentum to break significantly on the upside," analysts at Barclays Capital said in a note to clients Tuesday that was cited on MarketWatch.

In other metal prices for the London fix, silver was $18.420 an ounce for a loss of one cent or 0.1%. Platinum was $1,558.00 an ounce for a gain of $2.00 or 0.1%. And palladium was $460.00 an ounce, gaining $3.00 or 0.7%.

In a bullion coin item of the day, the US Mint sold 310K fractional Gold Eagles between their release last Thursday through to Monday. Broken out between sizes, United States Mint authorized purchasers scooped up 28,000 of the 1/2 oz Gold Eagles, 42,000 of the 1/4 oz Gold Eagles and 240,000 of the 1/10 oz Gold Eagles. Combined, a total of 48,500 ounces of gold left Mint inventories.

The Mint sells bullion coins for a small amount over the current spot price of gold, but only to authorized purchasers. The authorized purchasers in turn resell the coins to coin dealers, precious metal providers and/or directly to the public.

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