Gold Prices Slide Lower, Pulling Back from Record Highs – May 13, 2010

by Bullion Prices Staff on May 13, 2010

U.S. gold dropped from its all-time high on Thursday as investors were taking a portion of the profits built from the prior two record-setting days.

"Comex gold futures finished lower and nearer the session low Thursday as profit-taking pressure surfaced after prices Wednesday scored a new all-time high of $1,249.20," wrote Jim Wyckoff of Kitco News. "Thursday’s corrective pullback from recent strong gains is not unexpected, and gold remains well supported overall, amid continued safe-haven buying interest and an increase in overall general investor demand now that prices have hit a fresh record high."

In New York precious metals prices, June gold closed to $1,229.20 an ounce, ending lower by $13.90, or 1.1%. It ranged from $1227.50 to $1243.70.

"Gold is due for a breather," Matt Zeman, a metals trader at LaSalle Futures Group in Chicago, was quoted on Bloomberg. "People are taking profit, but it’s still a buy-the-dips market."

In white metals, July silver closed to $19.499 an ounce, declining 16.4 cents, or 0.8%. Platinum for July delivery ended down$7.90, or 0.5%, to $1,739.40 an ounce. And June palladium finished at $543.30 an ounce, losing $4.15, or 0.8%.

In London bullion prices, the afternoon gold fix was unchanged from Wednesday at $1,237.50 an ounce

"There is a lot of uneasiness with the European Union and investors are weary right now. If central banks continue to print money at this rate, there will be inflation to follow and I think people are protecting their wealth" by buying gold, Michael Daly, gold specialist at Chicago-based futures broker PFGBest, said on Reuters.

London silver was $19.430 an ounce for a loss of 16 cents, or 0.8%. Platinum was $1,728.00 an ounce, marking a gain of $25.00, or 1.5%. Palladium rose $6.00, or 1.1%, to $543.00 an ounce.

In a coin item of the day, the latest United States Mint coin sales figures have been released and bullion coins have been flying out Mint doors. For the full story, visit sister site CoinNews and read US Mint Sales: Bullion Coins Soar.

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