Bullion & Business Weekend Report – Oct. 3

by CoinNews.net on October 3, 2009 · 0 comments

Precious metals were mixed with mostly narrow weekly movement as the metals followed the ups and downs of the US dollar. In London, gold gained $12 on the week while platinum lost $12. Silver shifted a penny higher. New York oil futures turned lower on Friday but still surged 5.7 percent for the week. US stocks marked their second weekly decline. European stocks fell as well.

Weekend Recap: Silver, Gold and Platinum Prices; Business Week NewsIn weekly London bullion figures, gold rose 1.2 percent, silver climbed 0.1 percent and platinum fell 0.9 percent. Friday precious metals prices follow:

London silver closed to $16.21 an ounce, gaining a penny from last Friday’s close. New York December silver futures ended at $16.23.

London gold was fixed at $1,003.50 an ounce, for a gain of $12.00 on the week. New York gold for December delivery finished at $1,004.30.

London platinum fell to $1,269.00 an ounce, a loss of $12.00 for the week. New York platinum for October delivery closed at $1,275.60.

 

"The dollar is still the big driver of this gold trade," Frank Lesh, analyst at FuturePath Trading LLC in Chicago, was quoted on Bloomberg. "Unemployment numbers show the economy is still weak. A weaker economy means less demand for commodities, and gold is included in that."

"Metals investors are focusing on the trends in the dollar, which is being used as a gauge for risk appetite, but the dollar’s upside is fairly limited, and that will in turn keep the metals markets supported," Tom Pawlicki, precious metals and energy analyst at MF Global, was quoted on Reuters.

"More traders are beginning to see gold’s mini-rallies as profit-taking opportunities, but the largest slice of positions have not cashed in any significant number of chips," wrote Jon Nadler, Sr. analyst at Kitco Metals Inc. "The getting has been good, but profits are a powerful opiate. Thus, the vigorous attempts to push higher could still stay with us."

 

Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

To follow are silver, gold and platinum performance charts, oil news, week-ending world stock summaries, and precious metal article summaries for the week.

London Fix Charts: Silver, Gold and Platinum
(Sept 25 – Oct 2)



The London Fix is one of the most used bullion quotes around the world. The London AM fix for gold and platinum begins at 10:30am GMT (5:30am in New York), and the PM fix begins at 3pm GMT (10am in New York). The London Fix for silver begins each business day at 12pm GMT (7am in New York).

London Fix figures: percent and dollar changes*

(Sept 25 – Oct 2)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
0.1%
$0.01
$16.21
Gold
X
 
1.2%
$12.00
$1,003.50
Platinum
 
X
-0.9%
-$12.00
$1,269.00

(Sept 18 – 25)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-5.3%
-$0.91
$16.20
Gold
 
X
-2.0%
-$20.50
$991.50
Platinum
 
X
-4.2%
-$56.00
$1,281.00

(Sept 11 – 18)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
1.3%
$0.22
$17.11
Gold
X
 
0.4%
$3.75
$1,012.00
Platinum
X
 
3.5%
$45.00
$1,337.00

(Sept 4 – 11)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
5.9%
$0.94
$16.89
Gold
X
 
1.9%
$19.25
$1008.25
Platinum
X
 
3.4%
$42.00
$1,292.00

(Aug 28 – Sept 4)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
9.7%
$1.41
$15.95
Gold
X
 
3.5%
$33.50
$989.00
Platinum
X
 
0.5%
$6.00
$1,250.00
*Week change numbers are for Friday PM-Friday PM

Weekly World Business News: Oil, Gasoline, and Stocks Prices

Crude oil prices fell Friday to cut into their weekly gains "after the government reported that U.S. nonfarm payrolls declined more than expected in September, highlighting concerns about the precarious state of the economy," wrote Polya Lesova and Moming Zhou of MarketWatch.

New York oil for November delivery fell 87 cents, or 1.2 percent, to close at $69.95 a barrel. However, oil gained $3.75, or 5.7 percent, on the week.

 

The jobless rate "speaks directly to real-time demand in terms of a flagging consumer at the pump and industrial demand in general,"John Kilduff, senior vice president of energy at MF Global in New York, was quoted on Bloomberg. "It should continue to exert pressure on the crude-oil market."

 

Prices at the pump declined four-tenths of a cent Saturday as compared to Friday. The national average for unleaded gasoline was $2.461 a gallon, according to a AAA fuel report. The price is 5.1 cents lower than last week, 13.5 cents less than a month back, and down $1.12 from a year ago.

U.S. stocks were also pulled slightly down on Friday as the jobs data, which showed employers cut a more than expected 263,000 jobs in September, worried investors about the pace of a recovery.

 

"We opened down on the (payrolls) headline miss, but you saw buyers looking to buy the weakness after the Dow yesterday being down 200 points and 100 more today on the payroll news," Michael James, senior trader at Wedbush Morgan in Los Angeles, was quoted on Reuters.

 

For the week, the Dow lost 1.8 percent, the S&P declined 1.8 percent, and the Nasdaq fell 2.1 percent.

Friday figures for the three major US indexes follow:

  • The Dow dropped 21.61 points, closing to 9,487.67.

  • The S&P lost 4.64 points to close at 1,025.21.

  • The NASDAQ fell 9.37 points to finish at 2,048.11.

And in other world markets:

  • The German DAX tumbled 86.65 points to close at 5,467.90.

  • The Paris CAC 40 declined 70.87 points, to close at 3,649.90.

  • And the London FTSE 100 declined 59.11 points to finish at 4,988.70.

A rise in the U.S. unemployment rate to 9.8 percent and deeper-than-expected job cuts in September prompted a small sell-off on Wall Street. Conway Gittens of Reuters reports on this, world stocks and other news business news in the following video.

Bullion and Business Articles

In related silver and gold news, interesting or quick-read articles from the week include:

  • A Fundamental Question. Or Two. Or Three. – Jon Nadler, Kitco
    Gold relinquished the $1,000 level in the hours prior to yesterday afternoon’s final tick, but it was a slow, stubborn retreat. Such action persisted during the nighttime hours, fueled by additional …
  • US Mint Sales: Bullion Eagles Set Sept. Records, Presidential Dollars Soar – CoinNews
    Bullion American Eagle Gold and Silver Coins ended September in shining fashion, but recent demand has mostly weakened for collector proof and uncirculated coins. That is, except for uncirculated 2009 Presidential Dollar Sets. Their sales inexplicably blasted off like a rocket. These and more …
  • First Spouse Coin Sales, Gold Coins Cheaper – First Spouse Coins
    US Mint First Spouse Gold Coin sales retreated ever so slightly compared to the last reading reported on September 23. Gold coin prices went up Wednesday, the 23rd, which might have effected sales, especially since the spot price of gold started to decline …

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