Gold Rebounds after Fed, Bullion Gold Coins Backwards

by Bullion Prices Staff on August 10, 2010

U.S. precious metals futures prices closed on the down side Tuesday, but demand picked up in late afternoon following the Federal Reserve’s FOMC statement which indicated the U.S. recovery was losing steam and the Fed resumption of buying long-term Treasury securities.

"A gloomier assessment of the economy from Federal Reserve officials, coupled with plans to resume buying U.S. Treasury securities, should be supportive for gold prices." noted Allen Sykora of Kitco News. "The developments are likely to exert some pressure on the U.S. dollar, which in turn tends to underpin gold, analysts said. Also, some investors may buy the precious metal as a hedge due to uneasiness about the economy."

In New York precious metals prices, December gold ended at $1,198 an ounce for a loss of $4.60 or 0.4%. However, the yellow metal surged in after hours trading to as high as $1,209.90 an ounce.

"If the Fed keeps printing money to buy more debt, it’s going to be positive for gold," Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida, said and was quoted on Bloomberg. "Gold is going to keep going higher. It’s an excellent investment."

Silver for September delivery fell 8.4 cents or 0.5% to settle at $18.158 an ounce. It later moved as high $18.475 an ounce in electronic trading.

October platinum was $1,537 an ounce for a loss of $5.90 or 0.4%. Palladium for September delivery was $470.60, falling $9.05 or 1.9%.

In London bullion prices, the afternoon gold Fix was $1,192.50 an ounce for a loss of $10.50 or 0.9%.

Silver was fixed to $18.090 an ounce, down 39 cents or 2.1%.

In PGM metals, platinum was $1,539 an ounce for a loss of $19 or 1.2% while palladium was $479 an ounce for a loss of $6 or 1.2%

In United States Mint bullion sales, two coins were unusually decremented Monday as compared to Friday, and as reported this past weekend. The 1 oz American Buffalo Gold coin and 1 oz Gold Eagle coin numbers dropped 3,000 and 6,000, respectively.

No sales additions were published on Tuesday, but the American Silver Eagles jumped from August sales of 497,000 to 842,500 on Monday. The following table shows the latest totals:

U.S. Mint Bullion Coin August 2010 Sales

American Buffalo Gold 23,000 4,500 188,000
American Eagle Gold 1 oz 147,500 12,000 778,000
American Eagle Gold 1/2 oz 2,000 1,000 34,000
American Eagle Gold 1/4 oz 2,000 0 46,000
American Eagle Gold 1/10 oz 30,000 15,000 325,000
American Eagle Silver 2,981,000 842,500 21,992,000


Figures above are in coins, not ounces of gold sold.

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