Gold Rises for 7th Day, Bullion Gold Eagles Edge Higher

by Bullion Prices Staff on August 5, 2010

U.S. gold prices reached over $1200 an ounce on Thursday before settling just below, but still gaining $3.40 for the day. The increase was the seventh straight — a first in 2010. The metal was supported by a weakened U.S. dollar.

"The gold market pushed above the pivotal $1,200.00 mark on Wednesday and Thursday, but could not hold and close above it. Good demand for physical gold is keeping a floor under the gold market, but better risk appetite among investors worldwide recently is limiting fresh demand for the precious metal," noted Jim Wyckoff of Kitco News. "The U.S. dollar index was weaker Thursday, which provided some underlying support to the gold market."

In New York precious metals prices, December gold ended at $1,199.30 an ounce for an increase of 0.3%. It’s intraday low was $1,192.00. Its high was $1,202.80.

Silver for September gained as well, rising 4.3 cents or 0.2% to finish at $18.321 an ounce. Other precious metals declined for the day. October platinum closed at $1,572.50 an ounce, falling $13.70 or 0.9%. And palladium for September delivery closed at $496.05 an ounce for a loss of $4.10 or 0.8%.

In London bullion prices, the afternoon gold fix was $1,192.50 an ounce for a loss of $7 or 0.6%.

"Gold is stepping back into the spotlight as the dollar continues to slide lower," Matt Zeman, a metals trader at LaSalle Futures Group in Chicago, said and was quoted on Bloomberg. "Gold is a dollar trade now. Look for prices to go higher if the dollar weakens. If we see a stronger dollar, gold will have a difficult time."

London silver was $18.350, falling 15 cents or 0.8%. In PGM metals, platinum was $1,577.00 an ounce for a loss of $13 or 0.8% while palladium was $497.00 an ounce for a loss of $7 or 1.4%.

There has not been much action in United States Mint bullion coins of late. (For an in depth review of recent Mint sales, read the CoinNews article Sets Remain Most Active, Bullion Gold Eagles Wane.)

Since Tuesday’s report, the only Mint bullion coins to increase were the 1 oz American Gold Eagle by 2,500 and the American Buffalo Gold by 500. The following table shows the latest sales as of Thursday:

U.S. Mint Bullion Coin August 2010 Sales

American Buffalo Gold 23,000 1,500 185,000
American Eagle Gold 1 oz 147,500 3,500 769,500
American Eagle Gold 1/2 oz 2,000 0 33,000
American Eagle Gold 1/4 oz 2,000 0 46,000
American Eagle Gold 1/10 oz 30,000 0 310,000
American Eagle Silver 2,981,000 275,500 21,425,000


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

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