Gold Retreats 1.6%, Silver Prices Decline 7.5%

by Bullion Prices Staff on May 4, 2011

US bullion prices marched in unison lower for a second session on Wednesday. Silver led the declines at 7.5% followed by palladium at 4.6%, platinum by 1.8% and gold by 1.6%.

June gold prices lost $25.10 to end at $1,515.30 an ounce on the Comex division of the New York Mercantile Exchange. The yellow metal hit a low of $1,505.50 an ounce and a high of $1,543.50 an ounce.

Jim Wyckoff of Kitco News opines:

"There were media reports that some big hedge funds have been liquidating their long gold and silver trading positions recently. That could have put some additional downside price pressure on the precious metals markets Wednesday.

It’s important for traders and investors to understand that all major bull market runs–and especially those in commodity markets–experience significant, profit-taking price pullbacks in overall major price uptrends. In fact, serious downside price corrections in major bull market runs oftentimes lead traders to initially believe the market has topped out, only to see prices then make a strong recovery and push on to fresh highs. Big downside price corrections in overall bull markets can last a while, too. Veteran market watchers know this. While serious near-term technical damage has been inflicted in silver, the more important longer-term technical postures for both gold and silver remain fully bullish"

Jully silver prices over the last three days recorded their biggest decline since 1983, falling 19%. On Wednesday, silver prices dove $3.20 to $39.39 an ounce.

In other metals, June palladium finished down 35.70 to $746.70 an ounce and July platinum closed down $34.20 to t $1,826.30 an ounce.

In comparing current to previous London bullion PM fixing prices:

  • Gold rose $0.75 at $1,541 an ounce
  • Silver declined $3.32, or 7.6%, at $40.29 an ounce
  • Palladium fell $15, or 1.9%, at $760 an ounce
  • Platinum lost $17, or 0.9%, at $1,841 an ounce

US Mint bullion increases on Wednesday were limited to the 1 oz coins, as shown by the following sales.

2011 United States Mint Bullion Coins
1 oz American Gold Buffalo 1,000 3,000 61,500
1 oz American Gold Eagle 5,000 18,500 376,500
1/2 oz American Gold Eagle 0 10,000 43,000
1/4 oz American Gold Eagle 0 2,000 54,000
1/10 oz American Gold Eagle 0 5,000 205,000
5 oz America the Beautiful Silver 0 12,400 237,800
American Silver Eagle 47,000 701,000 15,949,000

Figures above are in coins, not ounces sold.

For the latest in silver bullion and numismatic coin sales, check out the US Mint sales article on sister site

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