Bullion & Business Weekend Report – Nov. 21

by CoinNews.net on November 21, 2009 · 1 comment

Precious metals surged this week with gold, platinum and silver posting sizable percentage gains. Inflation concerns, economic worries and speculation of a declining US dollar were common reasons proffered for the yellow metal’s fortunes. Crude oil fell Friday and for a second straight day, but managed a small weekly increase. In stocks, major US indexes ended mixed Friday and for the week while European indexes checked the losing column for both.

Weekend Recap: Silver, Gold and Platinum Prices; Business Week NewsFor London bullion weekly figures, gold rose 3.3 percent, silver surged 5.0 percent and platinum soared 5.6 percent.

In New York bullion weekly figures, gold rose 2.7%, silver advanced 6.1% and platinum jumped 3.8%.

Friday precious metals prices follow:

London silver closed to $18.18 an ounce, jumping 86 cents from last Friday’s close. New York December silver futures ended at $18.44 for a weekly $1.06 gain.

London gold was fixed at $1,140.00 an ounce, rising $36.00 this week. New York gold for December delivery finished at $1,146.80 for five-day gain of $30.10.

London platinum ended at $1,435.00 an ounce, climbing $76.00 since last Friday’s close. New York platinum for January delivery closed to $1,441.90, advancing $53.20 on the week.

 

"People want to buy gold on breaks. Gold will hold its stability relative to other asset classes as long as there are economic uncertainty and potential for inflation going forward," Adam Klopfenstein, senior market strategist at Lind-Waldock, said on Reuters.

"Inflation worries and recession worries bring gold buyers as low interest rates make it a good alternative to short term fixed income," George Gero, a precious-metals trader for RBC Capital Markets, said on MarketWatch. "Longer term holders are evident" with investors purchasing more contracts for delivery in future months.

"People are still buying gold because they think the dollar hasn’t been broken yet," Marty McNeill, a trader at R.F. Lafferty Inc. in New York, said on Bloomberg. "If the dollar rallies, it’s an excuse to sell for profit. Any dip in prices is a buying opportunity."

"’Corrections’ have been ultra-shallow up to this point, despite growing nervousness about the sustainability of the patterns now in place since the first day of September. Thus, we still expect to see attempts at higher levels not only today, but perhaps next week as well," Jon Nadler, senior analyst at Kitco Metals, Inc, wrote earlier Friday.

 

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 stock summaries, and precious metal article summaries.

London Fix Charts: Silver, Gold and Platinum
(Nov 13 – 20)



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*

(Nov 13 – 20)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
5.0%
$0.86
$18.18
Gold
X
 
3.3%
$36.00
$1,140.00
Platinum
X
 
5.6%
$76.00
$1,435.00

(Nov 6 – 13)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-1.2%
-$0.20
$17.32
Gold
X
 
0.7%
$7.25
$1,104.00
Platinum
X
 
0.9%
$12.00
$1,359.00

(Oct 30 – Nov 6)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
5.8%
$0.95
$17.53
Gold
X
 
5.5%
$56.75
$1,096.75
Platinum
X
 
2.0%
$27.00
$1,347.00

(Oct 23 – 30)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-6.1%
-$1.08
$16.57
Gold
 
X
-2.0%
-$21.75
$1,040.00
Platinum
 
X
-3.8%
-$52.00
$1,320.00

(Oct 16 – 23)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
2.0%
$0.34
$17.65
Gold
X
 
1.4%
$14.25
$1,061.75
Platinum
X
 
2.4%
$32.00
$1,372.00
*Week change numbers are for Friday PM-Friday PM

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

Crude oil fell for a second day on Friday as a rebounding dollar and weaker stock markets continued to weigh on commodities trading," reported Moming Zhou of MarketWatch.com.

 

"Things aren’t looking good because we’ve been unable to maintain momentum to the upside," Michael Fitzpatrick, vice president of energy with MF Global in New York, said on Bloomberg. "There’s a risk that we could test $60. That’s not likely, but I’m sure we’ll test $75 next week."

 

New York oil for December delivery on Friday fell 74 cents, or 1.0 percent, to close at $76.72 a barrel. For the week, however, oil gained 37 cents, or 0.5 percent.

Prices at the pump fell one-tenth of a penny from Friday to Saturday. The national average for unleaded gasoline was $2.641 a gallon, according to a AAA fuel report. The price is 2 cents above last week, 2.5 cents higher than a month back, and 65.2 cents more than a year ago.

U.S. stocks declined Friday and for the third straight day "as investors took weaker-than-expected results from computer maker Dell (DELL.O) and homebuilder D.R. Horton (DHI.N) as a further sign that the recovery would be anemic," wrote Ellis Mnyandu of Reuters.

 

"There’s a lot of concern that the stock market has gotten ahead of expectations," Jack Ablin, chief investment officer at Harris Private Bank, said on CNNMoney. "There’s not much room to advance without a concurrent improvement in economic news."

 

For the week, the Dow rose 0.5 percent, the S&P fell 0.2 percent, and the Nasdaq lost 1.0 percent.

Friday figures for the three major US indexes follow:

  • The Dow dropped 14.28 points to close at 10,318.16.

  • The S&P fell 3.52 points, closing at 1,091.38.

  • The NASDAQ tumbled 10.78 points to finish at 2,146.04.

And in other world markets:

  • The German DAX decreased 39.03 points to close at 5,663.15.

  • The Paris CAC 40 declined 30.86 points, to close at 3,729.36.

  • And the London FTSE 100 lost 16.29 points to finish at 5,251.41.

The Nasdaq finished lower for the first time in three weeks on worries the technology sector may signal a pause in the global recovery. Conway Gittens of Reuters reports on this, world stocks and other 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:

  • Gold rises for sixth session as inflation worries continue – MarketWatch
    Gold futures rose Friday for a sixth straight session to a new record high, ending the week with their third weekly gain as continued worries over a weaker dollar and global inflation encouraged investors to buy gold as a safe asset. Gold for December delivery, the most actively …
  • Gold Rises for Sixth Straight Session on Bets Dollar to Drop – Bloomberg
    Gold prices climbed for the sixth straight session on speculation that the dollar will decline, boosting demand for the metal as an alternative investment. The dollar touched a 15-month low against a basket of major currencies on Nov. 16. The greenback climbed as much as 0.8 percent today. Gold reached a record …
  • Curb Your Capital(ism) – Jon Nadler, Kitco
    A more robust gain in the US dollar overnight (rising 0.56 on the index, to 75.82) drew additional sales from gold holders and dented values in crude oil as well as other precious and base metals. The US currency gained ground following cautionary words on the state of economic recovery by ECB President Jean-Claude Trichet. US …
  • Gold Coins and Braille Silver Dollars Gain – CoinNews
    With gold prices pounding on new highs, many of the US Mint’s gold coins enjoyed stronger sales last week, although $20 UHRs dropped back and proof Buffalo coins continue to slow. The newly released Lincoln Presidency cent two-roll sets are visible in this week’s report. The initial numbers are solid. Braille Silver Dollars, which will go off sale in less than a month, also picked up nicely. These and more highlights follow: …
  • First Spouse Gold Coin Sales Rise – First Spouse Coins
    Last week’s price increase of $25 on Nov. 12 actually seemed to boost US First Spouse Gold Coin sales, because the commemorative series recovered from the prior report’s “slow down”. The latest US Mint sales figures show sales for seven of the ten available gold coins improved. More likely, the quick rise in gold prices provided opportunities for collectors to look again at the series …
  • Silver Eagles Hit 25 Million Milestone – Silver Coins Today
    The newest United States Mint sales figures indicate collectors are paying more attention to silver coins. Only two silver numismatic products failed to outperform their prior week numbers. And while bullion 2009 American Silver Eagle sales softened slightly in the last seven days, they did top 25,000,000 for the year and reinforced their dominance.In getting down to specifics, 2009 US Mint Silver Proof Set sales have again outpaced prior figures, and for the second …
  • Annual U.S. Inflation Down 0.2%, Consumer Prices Rise 0.3% – USInflation
    U.S. consumer prices rose more than expected in October as higher fuel and new and used car prices drove up the cost of living for Americans, according to government data released Wednesday. The newest Labor Department monthly report reveals that the Consumer Price Index (CPI) edged 0.3% higher, exceeding the 0.2% expectations voice …
  • US Mint Offers Newly Designed 2009 Platinum Eagle Coin – CoinNews
    The United States Mint officially confirmed today that the one-ounce 2009 American Platinum Eagle Proof Coin will be available for purchase at noon Eastern Time (ET) December 3, 2009 — the same date it had tentatively provided back in October. As part of the announcement, the US Mint released an image of the new theme for the reverse, which will change annually on platinum coins until 2014. …

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{ 1 comment… read it below or add one }

Anthony November 21, 2009 at 1:49 pm

it still surprises me that so many folks are buying into the ETF’s thinking that they have safety…when if you read their official documents, there is no guarantee that all the gold necessary to back the paper is there!

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