Bullion & Business Weekend Recap – April 10, 2010

by CoinNews.net on April 10, 2010 · 0 comments

Weekend Recap: Silver, Gold and Platinum Prices; Business Week News Precious metals rallied after a short Easter break and for a second week, with New York gold rising to a four-month high as world currencies became less attractive and safe-haven investments more appealing. Other metals followed gold’s lead.

Oil declined for a third day on Friday and from 18-month highs, paring weekly gains to finish nearly unchanged.

Major U.S. and European stock indexes closed higher for the week, with the Dow on Friday briefly topping 11,000 for the first time since September 2008.

Returning to New York metals and in weekly prices, June gold added $35.80, or 3.2 percent, to finish at $1,161.90 an ounce. The yellow metal reached a ceiling of $1,165.80, which was the highest price since December 8.

Silver for May delivery ended higher by 46 cents, or 2.6 percent, to $18.351 an ounce. The top point was $18.445, which was the highest level since January 20.

In other metals, July platinum rose $51.80, or 3.1 percent to $1,727.40 an ounce and June palladium increased $22.25, or 4.5 percent, to $513.60 an ounce.

 

"Gold is becoming the global go-to currency," Matt Zeman, a trader at LaSalle Futures Group in Chicago, said on Bloomberg. "People have been losing faith in fiat currencies as governments around the world dig themselves into huge deficits. Hard assets are going to benefit."

"Investors are understanding that the repercussions of the global crisis are far from over," said Jason Toussaint, managing director, investment of GLD’s sponsor, World Gold Trust Services, a unit of industry-funded World Gold Council. "It does point people to focus more on wealth preservation and downside risk protection, and gold is of course a useful tool to address those concerns."

 

In weekly London bullion prices, gold was fixed to $1,152.50 an ounce, rising $29.00, or 2.6 percent. Silver increased 65 cents, or 3.7 percent to $18.34 an ounce. Platinum settled at $1,718.00 an ounce, gaining $58.00, or 3.5 percent. Palladium added $20.00, or 4.1 percent, to $511.00.

 

"Continued concerns over Greece’s financial situation, coupled with a lack of attractive investment alternatives due to continuously low interest-rate levels both in the U.S. and the euro zone, should keep interest in gold high and should support the gold price," analysts at Commerzbank AG said in a note cited on MarketWatch.

"Gold prices climbed to highs and also set new peaks in euro and pound terms as speculators see a dearth of alternatives in an environment where their local beleaguered currencies might continue to pay next to nothing in terms of interest," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

 

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

London Fix Charts: Silver, Gold, Platinum and Palladium

(April 1 – 9)




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

(April 1 – 9)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
3.7%
$0.65
$18.34
Gold
X
 
2.6%
$29.00
$1,152.50
Platinum
X
 
3.5%
$58.00
$1,718.00
Palladium
X
 
4.1%
$20.00
$511.00

 

(March 26 – April 1)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
5.0%
$0.84
$17.69
Gold
X
 
2.5%
$27.00
$1,123.50
Platinum
X
 
4.0%
$64.00
$1,660.00

 

(March 19 – 26)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-2.7%
-$0.46
$16.85
Gold
 
X
-0.8%
-$9.00
$1,096.50
Platinum
 
X
-1.3%
-$21.00
$1,596.00

 

(March 12 – 19)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 –
0.0%
$0.00
$17.31
Gold
 
X
-0.1%
-$0.75
$1,105.50
Platinum
 
X
-0.1%
-$2.00
$1,617.00

 

(March 5 – 12)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
 
0.3%
$0.06
$17.31
Gold
 
X
-2.5%
-$28.75
$1,106.25
Platinum
X
 
2.6%
$41.00
$1,619.00
*Week change numbers are for Friday PM-Friday PM (Unless a time is closed for holidays)

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

Oil prices fell, "retreating further from 18-month highs, as bloated inventories stoked concerns about weak demand and technical signals sparked a selloff," reported Gene Ramons of Reuters.

 

"We’re still in corrective mode," Tom Bentz, a broker at BNP Paribas Commodity Futures Inc. in New York, said on Bloomberg. "Gasoline has been under pressure ever since the inventory report showed the increase in refinery runs."

 

New York crude oil for May delivery fell 47 cents, or 0.6 percent, to $84.92 a barrel. Although oil declined between Wednesday and Friday, it rose 5 cents, or 0.06 percent for the week.

Prices at the pump rose one-tenth of a cent between Friday and Saturday. The national average for regular unleaded gasoline is $2.863 a gallon, according to a AAA fuel report. The price is 4.3 cents higher than last week, 8.7 cents more than a month back, and 81.1 cents above that of a year ago.

In US stocks, the Dow closed to the highest point since September 2008, the S&P 500 finished at its highest level since June 2008, and the Nasdaq advanced just over 2 percent for the week. The three major indexes have climbed in seven of eight weeks.

 

Stocks rose Friday "with the Dow briefly topping 11,000 and the broad market ending higher for the seventh of eight weeks, as economic optimism trumped concerns about Greek debt," wrote Alexandra Twin of CNNMoney.com.

"The move to 11,000 is a clear sign of a well-advanced recovery," Jeffrey Kleintop, who helps oversee about $279 billion as chief market strategist at LPL Financial in Boston, wrote in a note cited on Bloomberg. "The rally becomes more meaningful for some once the Dow gets back to 11,000, where it was before Lehman Brothers failed — the event that precipitated the peak of the financial crisis and recession."

 

For the week, the Dow advanced 0.6 percent, the S&P ended up 1.4 percent and the Nasdaq rose 2.1 percent.

Friday closing figures for the three major US indexes follow:

  • The Dow climbed 70.28 points to close at 10,997.35.

  • The S&P rose 7.93 points to finish at 1,194.37.

  • The NASDAQ finished up 17.24 point to 2,454.05.

And in other world markets:

  • The German DAX gained 77.87 points to close at 6,249.70.

  • The Paris CAC 40 ended up 72.08 points to close at 4,050.54.

  • The London FTSE 100 advanced 58.28 points to finish at 5,770.98.

For the week, the DAX finished climbed slightly at 0.2 percent, the CAC 40 rose 0.4 percent and the FTSE 100 gained 0.5 percent.

Bullion and Business Articles

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

  • America the Beautiful Silver Bullion Coins Program
    The United States Mint will issue a new series of coins in 2010 that are composed of silver and depict American National Parks and National Sites.

    These coins are not the collector versions of the circulating America the Beautiful Quarters. They are, however, similar in name as they are called America the Beautiful Silver Bullion Coins and they share the same reverse designs.

    Both new U.S. Mint coin series, the America the Beautiful Quarters™ Program and the America the Beautiful Silver Bullion Coin™ Program, are authorized by the America’s Beautiful National Parks Quarter Dollar Coin Act of 2008. The act was signed into Public Law 110-456 by former President Bush on December 23, 2008.

  • Knock, knock, knockin’ on the IMF’s door… – Jon Nadler, Kitco Metals Inc.
    Increasing worries about a possible Greek debt default undermined the jawboning offered by ECB President Jean-Claude Trichet yesterday and essentially relegated him to the role of a spectator in the crisis. The idea of a default (notwithstanding any likely rescues, should the apparently inevitable take place) kept up the pressure on the euro overnight albeit the dollar retreated a modest 0.10 on the index and was trading near 81.40 at last check.

    As fear of a default morphed into expectations of a bailout, Greek bonds rose from their ashes for the first time in a fortnight and the euro also regained a modicum of composure. In fact, UBS analysts opined this morning that Greece will be knocking on the IMF’s door for help within days –perhaps, over the weekend. The dawdling might thus finally come to an end and the die will be cast. The common currency was last quoted at 1.339 against the greenback.

    Against this background of uncertainties gold prices climbed to three-month highs and also set new peaks in euro and pound terms as speculators see a dearth of alternatives in an environment where their local beleaguered currencies might continue to pay next to nothing in terms of interest. Meanwhile, word is that China might allow the yuan to rise by about 3% this year. Now there’s something of a surprise, eh?…

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