Gold Prices Rise to Six-Week High, Bullion Coins Unchanged

by Bullion Prices Staff on August 17, 2010

U.S. gold futures prices hit a six-week high on Tuesday, rising for a fourth straight day on the back of a weaker dollar and supportive physical demand.

"The market continues to see some fresh speculative buying interest amid a weakening U.S. dollar index and building technical momentum this week," noted Jim Wyckoff of Kitco News. "Recent weak economic data coming out of the U.S., China and Japan–the three largest economies in the world–have prompted a decrease in investor risk appetite, which has created more safe-haven buying interest in gold recently. The European Union also has its own sovereign debt problems, which have temporarily been pushed to the back burner, but which could come to a boil at any time. That’s also an underlying positive fundamental for gold."

In New York bullion prices, gold futures for December delivery was $1,228.30 an ounce, rising $2.10 or 0.2%. The yellow metal’s intraday low was $1,224.30. Its high was $1,231.10, which was the highest level dating back to July 1, 2010.

In other metal prices, silver for September delivery was $18.595 an ounce for a pick up of 16.8 cents or 0.9%. October platinum was $1,546.60 an ounce, gaining $9.30 or 0.6%. Palladium for September delivery was $497.30 an ounce for an increase of $11.55 or 2.4%.

In London bullion Fix prices, gold was fixed to $1,226.00 an ounce for an increase of $2.50 or 0.2%.

"We think it’s a good sign that the market has been able to recover from a bit of weakness in June and July when the technical picture didn’t look so good," Credit Suisse analyst Tobias Merath said and was quoted on Reuters. "The longer term outlook is fairly encouraging with dollar weakness and more importantly after the U.S. Federal Reserve meeting, bond yields dropped. This is positive as it reduces the opportunity cost of holding gold."

Silver was $18.540 an ounce, increasing 34 cents or 1.9%. In PGM metals, platinum was $1,541.00 an ounce, rising $7 or 0.5% while palladium was $494.00 an ounce, advancing $12 or 2.5%.

On the bullion coin front, the United States Mint has not published new sales since last Friday, which was reflected in the BullionPricesToday weekly prices report.

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