Gold Prices Settle to 3-Week Low, No Change to Bullion Coins

by Bullion Prices Staff on October 27, 2010

U.S. gold prices fell $16 on Wednesday as the U.S. dollar strengthened against other world currencies. Market news was prominent with stories that the Fed in November would take a slower approach in applying quantitative easing to stimulate the economy, which was cited for supporting the dollar and pressuring commodities like gold, silver and oil.

In New York gold futures prices for December delivery, the metal declined 1.2% to close at $1,322.60 an ounce — the lowest settling price since October 4, 2010. The intraday low for gold was $1,318.60. Its highest point was $1,343.70.

"Gold traders continue to focus heavily on the value of the U.S. dollar for their own metal’s price direction. The U.S. dollar index traded higher Wednesday on another short-covering bounce from recent selling pressure. There was a story in the Wall Street Journal Wednesday that suggested the Fed may not employ a large quantitative easing effort in November, but instead use a more "measured" approach," wrote Jim Wyckoff of Kitco News.

"This led some market watchers to believe markets may have over-reacted the past few weeks to what was believed by many to be a big quantitative easing effort to be announced in November."

In other U.S. precious metals prices, silver for December delivery declined 42.6 cents or 1.8% to $23.404 an ounce. It was the worst performer of the metals. January platinum was $1,678.10 an ounce for a loss of $25.90 or 1.5%. And December palladium was $619.15 an ounce for a loss of $6.30 or 1%.

The London bullion Fix price for gold came in at 1,324.50 an ounce, down $5 or 0.4%. The silver Fix rose 29 cents or 1.2% to $23.77 an ounce. In platinum group metals, the platinum fixing was $1,695 an ounce which was down $1 or 0.1% while the palladium fixing was $622 an ounce for a declination of $14 or 2.3%.

On the bullion coin front, the United States Mint reported no new sales of its American Eagle bullion coins since Tuesday.

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