Gold Prices Tumble, US Bullion Eagles Unchanged – July 1, 2010

by Bullion Prices Staff on July 1, 2010

New York gold prices plummeted on Thursday after closing out a second quarter in which prices soared 12%. Gold dropped $39.20 on the day, brought down by less than favorable economic reports which pulled money away from commodities and into U.S. Treasuries.

"Near-term technical damage was inflicted and safe-haven buying interest disappeared," wrote Jim Wyckoff of Kitco News. "Gold on Thursday at least temporarily yielded its safe-haven status to the U.S. Treasury market, as bonds and notes gained at the expense of a slumping U.S. dollar and U.S. stock market after a batch of weak U.S. economic data was released earlier in the day."

In New York precious metals prices, August gold was $1,206.70 an ounce for a loss of 3.2%. It reached an intraday low of $1,205.60 an ounce and a high of $1,244.80 an ounce.

"What you are seeing is clearly a nervous feeling about all assets, whether they be tangible or intangible, paper or not. The overall mood is bearish and metals may not be the safe haven that you can just bank on," Scott Meyers, senior analyst at New York-based Pioneer Futures was quoted on Reuters.

In other U.S. metals prices, September silver closed to $17.790 an ounce, tumbling 91.8 cents or 4.9%; October platinum was $1,506.80 an ounce for a loss of $30.50 or 2.0%, and September palladium ended at $429.05 an ounce, falling $15.35 or 3.5%.

In London bullion prices, the afternoon gold fix was $1,234.00 an ounce for a loss of $10.00 or 0.8%.

"People are thinking maybe the European debt situation is not so bad," Matt Zeman, a trader at LaSalle Futures Group in Chicago, was noted on Bloomberg. "Some of the safe-haven money is coming out of the market."

London silver was $18.650 an ounce, falling 9 cents or 0.5%. In PGM metals, platinum was $1,514.00 an ounce for a loss of $18.00 or 1.2% while palladium was $433.50 an ounce, falling $12.50 and the most percentage-wise at 2.8%.

In bullion coin news, the United States Mint closed out June sales, but did not publish any new sales for the day. Bullion coin demand was down in June as compared to the super-hot month of May. For a brief overview, read Smallest 2010 Fractional Gold Eagles Favored.

Below are the latest bullion totals as published by the U.S. Mint.

U.S. Mint Bullion Coin Sales in July 2010

American Buffalo Gold 33,500 0 160,500
American Eagle Gold 1 oz 97,000 0 618,500
American Eagle Gold ½ oz 31,000 0 31,000
American Eagle Gold ¼ oz 44,000 0 44,000
American Eagle Gold 1/10 oz 280,000 0 280,000
American Eagle Silver 3,001,000 0 18,168,500

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