Gold Rises for Third Day, Silver; Metals Surge – May 26, 2010

by Bullion Prices Staff on May 26, 2010

U.S. gold advanced for a third session on Wednesday, climbing back about $1,200 an ounce with continued safe-haven support. Other metals rallied as well, with palladium gaining the most in percent terms at 3.7%.

"The gold market continues to find support from safe-haven buying on trader uncertainty about the European Union debt crisis and on fresh worries about a military conflict between North Korea and South Korea," noted Jim Wyckoff of Kitco News. There was also an easing to margin selling which has been "pressuring gold recently, due to traders liquidating their long gold positions to raise cash," Wyckoff added.

In New York precious metals prices, June gold closed was $1213.40 an ounce, rising $15.40, or 1.3%. Gold hit an intraday low of $1,201.00 and a high of $1,216.90.

"Investors are still steadily buying into the market, there’s still a great deal of concern" about a pause in the global recovery and gold continues to benefit from them, James Moore, an analyst at Thebulliondesk.com in London was cited on MarketWatch.

In other metals, July silver closed to $18.306 an ounce, surging 52.5 cents or 3.0%. July platinum ended at $1,530.30 an ounce, rising rose $38.40 or 2.6%. June palladium advanced to $446.35 an ounce, gaining $15.95.

In London bullion prices, the afternoon gold fix was $1,212.00 an ounce, gaining $13.75 or 1.1%.

"The combination of factors has seen investors shift money out of equities and riskier assets, toward the safe havens of gold and certain government bonds," Standard Bank said in a research note cited on Reuters.

Silver was $18.270 an ounce for an increase of 64 cents or 3.6%. Platinum was $1,533.00 an ounce for a gain of $40.00 or 2.7%. Palladium was $447.00 an ounce, rising $19.00 or 4.4%.

In daily United States bullion coin sales, American Silver Eagles remained unchanged for a second day with 3.5 million sold this month. American Gold Buffalo coins climbed 4,500 for 70,500 for May. American Gold Eagles rose 18,000 to reach 176,000 this month.

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