Gold Tumbles 2.1%, Bullion American Eagles Unchanged

by Bullion Prices Staff on July 27, 2010

U.S. gold futures dived to three-month lows on Tuesday, as sour consumer confidence data, a higher dollar and technical selling pressured prices.

"The gold market started out weak Tuesday morning, and then slipped further when the S&P Case-Shiller May 10-city home price index was reported up 5.4% year-on-year," noted Jim Wyckoff of Kitco News. "The U.S. dollar index moved higher on that news and then gained more ground after a weaker-than-expected U.S. consumer confidence reading was released by the Conference Board … Gold traders chose to focus on the rising U.S. dollar index instead of the implications of a weakening consumer confidence index."

In New York precious metals prices, August gold was $1,158.00 an ounce for a loss of $25.10 or 2.1. The closing price was the lowest since April 26, 2010. Gold reached an intraday low of $1,156.90 and a high of $ $1,186.50.

In other metals, September silver was $17.626 an ounce for a loss of 57.4 cents or 3.2%. Platinum for October delivery was $1,536.70 an ounce, falling $19.10 or 1.2%. And September palladium was $466.55 an ounce for a loss of $8.45 or 1.8%.

InĀ London bullion prices, the afternoon gold fix was $1,168.00 an ounce for a loss of $15.50 or 1.3%.

"The risk trade is back on," Matt Zeman, a metals trader at LaSalle Futures Group in Chicago said on Bloomberg. "Investors right now are seeking higher returns, and gold doesn’t fit the bill."

London silver was $18.160 an ounce, gaining 15 cents or 0.8%. Platinum was $1,560.00 an ounce for a pick up of $14.00 or 0.9%. Palladium was $478.00 an ounce, adding $1 or 0.2%.

There was no movement in United States Mint bullion coins reported Tuesday. American Silver Eagles, however, did jump by 360,000 on Monday. The latest totals for all Mint bullion offerings follow:

U.S. Mint Bullion Coin July 2010 Sales

American Buffalo Gold 33,500 20,000 180,500
American Eagle Gold 1 oz 97,000 94,000 712,500
American Eagle Gold 1/2 oz 31,000 1,000 32,000
American Eagle Gold 1/4 oz 44,000 2,000 46,000
American Eagle Gold 1/10 oz 280,000 30,000 310,000
American Eagle Silver 3,001,000 2,652,000 20,820,500


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

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