Bullion & Business Weekend Report – Oct. 17

by CoinNews.net on October 17, 2009 · 0 comments

Precious metals were mixed on the week, moving narrowly from last week’s soaring prices. For the week in London, gold and silver edged slightly lower while platinum inched higher. In New York futures, gold and platinum climbed several dollars while silver ended down nearly 30 cents.

Weekend Recap: Silver, Gold and Platinum Prices; Business Week NewsIn other markets on Friday, New York oil futures gained for a seventh straight day and closed to a record one-year high. US stocks declined slightly, but enjoyed weekly gains as did European stocks.

In London bullion weekly figures, gold slipped 0.4 percent, silver fell 1.8 percent and platinum advanced 0.2 percent. Friday precious metals prices follow:

London silver closed to $17.31 an ounce, falling 32 cents from last Friday’s close. New York December silver futures ended at $17.42 for a 27 cent loss.

London gold was fixed at $1,047.50 an ounce, for a $4.00 loss on the week. New York gold for December delivery finished at $1,050.70 for a $2.10 gain.

London platinum ended at $1,340.00 an ounce, advancing $3.00 since last Friday’s close. New York platinum for January delivery ended at $1,348.50 for a $16.90 gain.

 

"Gold is following the dollar very closely," Andrey Kryuchenkov, analyst at VTB Capital, was quoted on Reuters. "The market has run ahead of itself and a stronger dollar is a trigger to sell."

"Longer term, gold has all the pieces of the puzzle to go much higher," Matt Zeman, a LaSalle Futures Group metals trader in Chicago, was quoted on Bloomberg. "In the short term, no one wants to buy on strength. The lack of follow-through buying is a disappointment if you’ve been long."

"The break below the $1048 level might signal that a more meaningful correction has been set into motion. The current objective for such a move is near the $1,030 per ounce level," wrote Jon Nadler, Sr. analyst at Kitco Metals Inc.

"However, a U-turn to back above the $1,055 an ounce current resistance area could bring the $1065 figure back into discussion. The market requires a daily close at above the $1,065 mark in order to signal that the chances of a short-term correction are not a remaining threat."

 

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
(Oct 9 – 16)



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*

(Oct 9 – 16)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-1.8%
-$0.32
$17.31
Gold
 
X
-0.4%
-$4.00
$1,047.50
Platinum
X
 
0.2%
$3.00
$1,340.00

(Oct 2 – 9)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
8.8%
$1.42
$17.63
Gold
X
 
4.8%
$48.00
$1,051,50
Platinum
X
 
5.4%
$68.00
$1,337.00

(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
*Week change numbers are for Friday PM-Friday PM

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

Crude oil prices hit a one-year high Friday "gaining for a seventh straight session after data showed third-quarter U.S. industrial production increased at the fastest pace in four years," wrote Polya Lesova and Myra P. Saefong of MarketWatch.

New York oil for November delivery climbed 95 cents, or 1.2 percent, to close at $78.53 a barrel. Oil surged $6.76, or 9.4 percent, on the week.

 

"There continues to be optimism about an economic rebound," Paul Crovo, a Philadelphia-based oil analyst with PNC Capital Advisors, was quoted on Bloomberg. "Prices have been rising on speculation that this will lead to a tightening of the supply-demand balance going forward."

 

Prices at the pump jumped 2.6 cents from Friday to Saturday. The national average for unleaded gasoline was $2.527 a gallon, according to a AAA fuel report. The price is 5.1 cents higher than last week, 27.2 cents more than a month back, and 51 cents less than a year ago.

U.S. stocks fell Friday "after disappointing results from General Electric Co and Bank of America Corp demonstrated the road to economic recovery will be bumpy," wrote Leah Schnurr of Reuters.

 

"Some companies aren’t seeing that improvement in revenue everyone’s looking for, and in the financial sector, credit losses remain a significant problem," Robert McGee, portfolio manager at CS McKee, was quoted on CNNMoney.com.

 

For the week, the Dow climbed 1.33 percent, the S&P advanced 1.51 percent, and the Nasdaq rose 0.82 percent.

Friday figures for the three major US indexes follow:

  • The Dow tumbled 67.03 points, closing at 9,995.91.

  • The S&P lost 8.88 points to close at 1,087.68.

  • The NASDAQ fell 16.49 points to finish at 2,156.80.

And in other world markets, indexes recorded weekly gains but ended mixed on Friday as the following figures show:

  • The German DAX dropped 87.38 points to close at 5,743.39.

  • The Paris CAC 40 decreased 56.38 points, to close at 3,827.60.

  • And the London FTSE 100 declined 32.71 points to finish at 5,190.24.

U.S. blue chips fell back below 10,000 on Friday after disappointing results from Bank of America and General Electric and a surprise drop in consumer sentiment sparked concerns about the pace of economic recovery. Conway Gittens of Reuters reports on this, world stocks and other business news in the following video. Soundbite is Stephen Wood of Russell Investments.

Bullion and Business Articles

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

  • Gold ends slightly higher as consumer confidence drops – MarketWatch
    Gold futures erased earlier losses Friday, ending slightly higher after a bigger-than-expected drop in U.S. consumer confidence drove down stock markets and raised investors’ interest in gold. On the Comex division of the New York Mercantile Exchange, the most actively traded …
  • Gold Rebounds in New York on Bets Dollar Will Extend Slump – Bloomberg
    Gold prices rebounded in New York on speculation that the dollar will extend a slump, enhancing the appeal of the precious metal as an alternative asset. The greenback is headed for the second straight weekly loss against a basket of six major currencies. Before today …
  • Rich Gold Now Sold (By, And To, The Rich) – Jon Nadler, Kitco
    A second day of falling prices in gold was once again, brought to you courtesy of a strengthening dollar. Initial support at $1048 was once again breached early this morning, precipitated by a gain of 0.35 in the USD on the index (now at 75.77). Gold spot prices have touched …
  • Gold Eagles Top 1M, Proof Presidential Dollars Plunge – CoinNews
    A month ago our US Mint sales report headline said “Presidential Dollar Sets Pass 600K.” Today that picture reverses as the proof dollars withdraw to fall back below the milestone. Several other products fell as well in a week where demand for collector coins trended mostly lower. There were several exceptions, especially for coins of yellow complexion. Bullion …
  • First Spouse Coin Sales Spike Before Price Change – First Spouse Coins
    Perhaps collectors saw a window of opportunity last week and jumped on it, since sales for US Mint First Spouse Gold Coins more than doubled their prior week’s numbers. Prices were lower for the coins from September 30 through October 7, and then they went up by $25 on October 8. Another price boost occurred …
  • US Silver Coins Slide in Sales, Braille Education Set Debuts – Silver Coins Today
    Demand mostly declined last week for silver coins, the most recent US Mint sales figures reveal. In fact, two product options were adjusted downward by the Mint, in affect showing a negative weekly increase. Bullion Silver Eagles, however, had a solid jump …
  • 2008-W Uncirculated Silver Eagles Jump – CoinNews
    The latest US Mint figures show weekly sales more than doubled for the 2008 Annual Uncirculated Dollar Set, which includes the 2008-W Uncirculated Silver Eagle. Driving them higher is the fact that the set is the only way to buy an uncirculated Silver Eagle from the US Mint this year, following the 2009 Eagle cancellations…
  • Silver Coin Melt Values at Fresh Highs – Silver Coins Today
    Silver coin melt values registered fresh highs last week, displacing the previous peaks reported just three weeks ago. The gains came as a result of record silver prices, with London silver reaching $17.80 an ounce on Thursday. Despite a 17 cent retreat on …
  • US 12-Month Inflation Down 1.3% – US Inflation Calculator
    US consumer prices inched slightly higher but at a slower pace in September than in August, government released data revealed Thursday. The Consumer Price Index rose 0.2% last month following a 0.4% increase in August, according to the latest monthly CPI report from the Labor Department. Excluding volatile food and energy prices …

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