Bullion & Business Weekend Report – Feb. 20

by CoinNews.net on February 20, 2010 · 0 comments

Weekend Recap: Silver, Gold and Platinum Prices; Business Week News Weekly precious metals prices, with silver and gold in particular, surged and advanced for a second straight week of gains.

Metals rallied on Tuesday to start the American holiday-shortened week. Gold benefited slightly from a weakened euro on Wednesday, and then edged lower on Thursday as news that the International Monetary Fund (IMF) planned to sell 191.3 tons of gold on the open market. Metals retreated early on Friday in reaction to the Fed discount rate increase, which immediately spurred the greenback. But then gains ensued as the news settled, the dollar weakened and a tame U.S. inflation reading for January played little into the day’s events.

Gains were not limited to bullion. New York crude oil rose to a five-week high. U.S. stocks marked four consecutive days of increases. German, French and London stocks all finished the week higher as well.

In weekly London Fix bullion prices, gold gained $30.75, or 2.8 percent, to $1,112.75 an ounce. Silver rose 62 cents, or 4.0 percent, to $15.95 an ounce. Platinum settled at $1,513.00 an ounce, rising $8.00, or .05 percent.

 

"We anticipate the current dip buying mentality to continue as background concerns over Sovereign debt, inflation and even deflation draw investor diversification," James Moore, an analyst at theBullionDesk.com., wrote in a note that was cited on MarketWatch.

 

In weekly New York metals prices, April gold gained $32.10, or 2.9 percent, to end at $1,122.10 an ounce. Silver for March delivery finished at $16.413 an ounce, jumping 97 cents, or 6.3 percent. April platinum climbed $32.50, or 2.2 percent, to close at $1,543.60 an ounce.

 

"Investors are buying gold as a hedge against currencies’ volatility," Carlos Sanchez, a metals analyst with CPM Group, said on Reuters. "Gold seems to be consolidating near the $1,130 an ounce area."

 

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.

 

"The US dollar surged in the wake of the plethora of headlines that followed the Fed announcement, wrote Jon Nadler, senior analyst at Kitco Metals, Inc."In the hours immediately following the Fed news, gold prices moved over 1 percent lower."

 

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

London Fix Charts: Silver, Gold and Platinum

(Feb 12 – 19)



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 Precious Metals Prices

(Feb 12 – 19)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
4.0%
$0.62
$15.95
Gold
X
 
2.8%
$30.75
$1,112.75
Platinum
X
 
0.5%
$8.00
$1,513.00

 

(Feb 5 – 12)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
1.1%
$0.16
$15.33
Gold
X
 
2.3%
$24.00
$1,082.00
Platinum
X
 
2.0%
$30.00
$1,505.00

 

(Jan 29 – Feb 5)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-6.9%
-$1.12
$15.17
Gold
 
X
-1.9%
-$20.50
$1,058.00
Platinum
 
X
-2.4%
-$37.00
$1,475.00

(Jan 22 – 29)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-5.7%
-$0.99
$16.29
Gold
 
X
-0.5%
-$5.50
$1,078.50
Platinum
 
X
-1.8%
-$28.00
$1,512.00

(Jan 15 – 22)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-6.7%
-$1.24
$17.28
Gold
 
X
-3.9%
-$44.00
$1,084.00
Platinum
 
X
-3.8%
-$60.00
$1,540.00
*Week change numbers are for Friday PM-Friday PM (Unless a time is closed for holidays)

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

Oil prices gained on Friday, "erasing earlier losses, as energy traders played off the Federal Reserve’s surprise move to raise its discount rate," wrote Polya Lesova and Carla Mozee of MarketWatch.

 

"The Fed’s increase of the discount rate shows that they expect further improvement of the U.S. economy," Jason Schenker, president of Prestige Economics LLC, an Austin, Texas- based energy consultant, said on Bloomberg. "It’s a signal that more growth is in the cards and the fundamentals will improve."

 

New York crude-oil for March delivery gained 75 cents, or 0.9 percent, to close at $79.81 a barrel on Friday. The price is $5.68, or 7.7 percent, higher than last week.

Prices at the pump surged 1.1 cents between Friday and Saturday. The national average for regular unleaded gasoline is $2.634 a gallon, according to a AAA fuel report. The price is 1.2 cents higher than last week, 9.9 cents lower from a month back, and 66.1 cents higher than a year ago.

U.S. stocks rose Friday," marking the fourth straight day of gains, but investors were cautious buyers at the end of a big week that included the Fed’s decision to boost the emergency bank lending rate," wrote Alexandra Twin of CNNMoney.

 

"It’s a good sign that people are buying stocks," Mark Bronzo, a money manager in Irvington, New York, at Security Global Investors, which oversees $21 billion, said on Bloomberg.

"Investors are listening to the Fed, which has indicated that even though the economic recovery has taken hold, it will not begin to raise rates. On top of that, the CPI coming in lower-than-expected is another indication that the Fed can afford to be fairly patient with tightening."

 

For the week, the Dow gained 3 percent, the S&P rose 3.1 percent and the Nasdaq ended up 2.8 percent.

Friday closing figures for the three major US indexes follow:

  • The Dow gained 9.45 points to close at 10,402.35.

  • The S&P rose 2.42 points closing to 1,109.17.

  • The NASDAQ climbed 2.16 points to end at 2,243.87.

And in other world markets:

  • The German DAX rose 41.64 points to close at 5,722.05.

  • The Paris CAC 40 advanced 21.71 points to close at 3,769.54.

  • And the London FTSE 100 gained 33.08 points to finish at 5,358.17.

Bullion and Business Articles

In related bullion, business and United States Mint news, interesting or quick-read articles from the week include:

  • Gold futures finish week higher – MarketWatch
    Gold futures reversed Friday losses to finish the week higher after U.S. inflation data for January proved tamer than expected and as traders offered a positive take on the Federal Reserve’s step toward normalized lending …
  • Gold up as investors seek refuge in the bullion – Reuters
    Gold prices rose on Friday, reversing early losses fueled by a stronger dollar, as investors bought the metal to hedge against currencies’ volatility and debt default risks in Europe …
  • Five Finger Discount No More – Jon Nadler, Kitco
    New York spot metals dealings opened the final session of the week in the mixed fashion this morning. Gold was lower by $0.20 per ounce, quoted at $1107.90 as against a somewhat milder than last night 0.10 advance in the US dollar on the trade-weighted index (last seen at 81.04 ) and a euro quoted at 1.352 (having dipped to under 1.35 overnight). Peculiar headline of the morning: "World Gold Council Welcomes IMF Gold Sales." Book-squaring will keep things simmering along for the rest of the day. Silver started the session with a 15-cent gain, quoted at $16.00 per ounce …

  • U.S. Inflation Rises 2.6%, Consumer Prices Edge 0.2% Higher
    The cost of living in the U.S. rose less than expected in January, as Americans paid less for new cars, clothes, hotels, homes and other shelter-related costs, the government reported Friday. However, the price of energy continues to be a burden with increases during the month and year that drove inflation higher over the past 12 months, according to the Labor Department. The Consumer Price Index (CPI), which is the government’s most closely watched barometer for measuring inflation at the consumer level, rose 0.2% in January for the fifth consecutive month. The figure is lower than the 0.3% increase most analysts were forecasting …

  • US Mint Sales: Gold Coin Interest Picks Up – CoinNews.net
    The United States Mint headquarters in Washington, D.C. was shutdown for most of last week thanks to the two blizzards that blew through the East Coast. The wintry havoc not only closed the Mint and other federal agency doors, but left collectors high and dry when it came to the weekly coin sales figures. This week is catch-up, with two weeks worth of data combined into one. To the numbers… The 2010 Presidential Dollar Proof Set launched on Thursday, February 11, to a collector community eagerly awaiting to place orders. A solid 224,426 were scooped up by Sunday, February 14 …

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