Gold Prices Slip, Bullion American Eagles Coins Rise – June 16, 2010

by Bullion Prices Staff on June 16, 2010

U.S. gold futures edged lower Wednesday, falling 0.3% in the wake of a riskier mood appetite by investors and a touch of profit-taking, so opined many analysts.

"Comex gold futures closed slightly lower in quieter trading activity Wednesday. Mild profit-taking pressure was featured on the corrective pullback in prices," noted Jim Wyckoff of Kitco News. "The Euro currency was weaker and the U.S. dollar index was firmer Wednesday… Price action Wednesday and this week suggests investors are gaining some more risk appetite."

In New York precious metals prices, August gold ended at $1,230.50 an ounce, falling $3.90. The closing price was toward its daily low of $1,228.30. Gold’s high was at $1,239.50.

"Investors are embracing risk," Adam Klopfenstein, a senior market strategist and trader at Lind-Waldock in Chicago, said on MarketWatch. "As the fear, free-for-all atmosphere has subsided somewhat, investors headed for stocks" and other riskier bets, he added.

July silver closed to $18.441 an ounce, dropping 13.7 cents, or 0.7%. In PGM metals, July platinum declined $10.50 or 0.7% to finish at $1,567.50 an ounce while September palladium lost 35 cents, or 0.1%, to $475.20 an ounce.

In London bullion prices, the afternoon gold fix was $1,234.50 an ounce for a gain of $9.50 or 0.8%.

"We favor standing aside in gold until prices fall toward technical support in the $1,198 to $1,210 range," Tom Pawlicki, an analyst at MF Global Holdings Ltd., a broker in Chicago, was cited on Bloomberg.

In other London fix prices, silver was $18.510 an ounce, rising 9 cents or 0.5%. Platinum was $1,568.00 an ounce, advancing $10.00 or 0.6%. And palladium was $471.00 an ounce, adding $11.00 or 2.4%.

United States Mint bullion coin sales advanced on Wednesday, although smaller sized coins have not shown movement since 2010 fractional Gold Eagle sales debuted two days ago. Since Monday, the U.S. Mint has sold:

  • 2,000 more American Buffalo gold bullion coins to reach 25,000 for the month of June and 152,000 this year
  • 2,000 more one ounce America Gold Eagles for 45,000 this month and 567,000 for this year
  • 62,000 more American Silver Eagles for 1,724,500 this month to reach 16,892,000 this year

With precious metals prices moving narrowly the last few days, physical demand for American bullion coins has apparently slowed based on the numbers.

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