Bullion Prices and Business Weekly Update – July 24, 2010

by CoinNews.net on July 24, 2010 · 0 comments

Weekend Recap: Silver, Gold and Platinum Prices; Business Week NewsStress test results of the European banking system were revealed Friday. Markets took their queue, moving firmly as the data indicated major banks could weather the storm of a double-dip recession.

U.S. stocks rallied as the news was coupled with better-than-expected corporate earnings. The major indexes added to weekly gains that ranged between 3.2 percent and 4.2 percent. European markets closed before the results were available, with stocks ending mixed on Friday but they were all higher for the week as well.

U.S. gold prices opened strong Friday, posting an intraday high of $1,203.90 an ounce — the best level since last week. Safe-haven buying was muted when the banking data was released, and the yellow metal retreated $7.80 for the day. However, most analysts pinned declines to profit taking after gold climbed above the $1,200 mark.

Gold’s reversal was in large part a result of "profit-taking based on [Thursday’s] gains and today’s [Friday’s] rise to more than $1,200 an ounce," Carlos Sanchez, an analyst with commodities consulting firm CPM Group in New York was quoted on MarketWatch.

New York gold for August delivery fell 0.7 percent to $1,187.80 an ounce on Friday. Its weekly loss was 40 cents, or less than one half percent.

"The dip-buying interest seen in gold over the past few days is an encouraging indicator and suggests ongoing diversification from fiat currencies by investors looking for more tangible assets," James Moore, an analyst at TheBullionDesk.com in London, was cited on Bloomberg.

In other New York precious metals weekly prices, September silver advanced 31.3 cents, or 1.8 percent, to $18.101 an ounce. October platinum rose $30.70, or 2.0 percent, to $1,542.80 an ounce. And September palladium soared $18.15, or 4.0 percent, to close at $466.75 an ounce.

In London bullion weekly prices, the gold fix was $1,190.50 an ounce, inching higher $1.25, or 0.1 percent.

"As is typical with gold, relationships are changing," Societe Generale analyst David Wilson was quoted on Reuters. "We’ve gone from a positive correlation between gold and the dollar — both being safe havens — to a negative one in the space of a few days."

"The upward move in gold was seen as largely technical in nature and significant gains (beyond the broader $1205-$1220 zone) appear difficult to achieve now that investors are exhibiting ebbing fears of an imminent eurozone crisis while manifesting rising degrees of risk appetite for equities and other assets in the process," noted Jon Nadler, senior analyst at Kitco Metals, Inc.

In additional weekly London metal prices: silver edged lower 8.0 cents, or 0.4 percent, to $18.170 an ounce; platinum settled at $1,541.00 an ounce, advancing $29.00, or 1.9 percent; palladium was $460.00 an ounce for a gain of $4.00, or 0.9 percent.

Investing in bullion coins has risen alongside gold’s popularity, catering to a small subset of investors who want physical possession regardless of how much more they may pay. Claudia Assis reports on the topic in this MarketWatch video:

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

(July 16 -23)




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).

July London Fix Precious Metals Prices

(July 16 – 23)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-0.4%
-$0.08
$18.170
Gold
X
 
0.1%
$1.25
$1,190.50
Platinum
1.9%
$29.00
$1,541.00
Palladium
X
 
0.9%
$4.00
$460.00

 

(July 9 – 16)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
2.1%
$0.38
$18.250
Gold
 
X
-1.6%
-$19.50
$1,189.25
Platinum
-1.0%
-$15.00
$1,512.00
Palladium
X
 
0.4%
$2.00
$456.00

 

(July 2 – 9)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-0.6%
-$0.11
$17.870
Gold
X
 
0.6%
$7.25
$1,208.75
Platinum
X
 
1.3%
$19.00
$1,527.00
Palladium
X
 
4.8%
$21.00
$454.00

 

(June 25 – July 2)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
 
X
-3.6%
-$0.67
$17.980
Gold
 
X
-4.2%
-$52.50
$1,201.50
Platinum
 
X
-3.1%
-$48.00
$1,508.00
Palladium
 
X
-8.1%
-$38.00
$433.00
*Week change numbers are for Friday PM-Friday PM (Unless a time is closed for holidays)

World Business News: Oil, Gasoline, and Stocks Prices

Crude oil prices fell Friday as they "hit an 11-week high above $79 per barrel on Friday then retreated to close lower, as markets digested the European bank stress test results while taking support from the temporary loss of some Gulf of Mexico oil production ahead of Tropical Storm Bonnie," wrote Robert Gibbons of Reuters.

Oil surged 3.6 percent on the prior day.

"You had such a big lift yesterday that it makes sense to give back some of it," Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, was noted on Bloomberg. "One reason we ended so strong yesterday was the tropical storm. The path is threatening but it probably will only be a tropical storm, and not much of one."

U.S. crude oil for September delivery declined 32 cents, or 0.4 percent to $78.98 a barrel. Prices rallied on the week, however, gaining $2.97, or 3.9 percent, after retreating 8 cents to $76.01 a barrel last week.

Prices at the pump surged a half penny between Friday and Saturday. The national average for regular unleaded gasoline is $2.723 a gallon, according to the daily AAA fuel report. The price is two-tenths of a cent lower than last week, 3 cents down from a month back, and 25.3 cents higher than a year ago.

U.S. stocks jumped Friday "with the Dow briefly turning positive for the year after a report showed that most of Europe’s big banks passed their stress tests, easing investor worries about the strength of the global economy," wrote Alexandra Twin of CNNMoney.com.

Positive corporate earnings announcements were also cited as a factor in gains.

"Earnings reports are helping the market get a little more comfortable with the fact that you can have economic growth more moderate, and in that environment companies can still grow their earnings and are seeing pretty good business," Walter Todd, who helps manage about $835 million at Greenwood Capital in Greenwood, South Carolina, was quoted on Bloomberg. "If that trend continues, the market can continue to work higher."

Friday closing figures for the three major US indexes follow:

  • The Dow climbed 102.32 points, or 0.99 percent, to 10,424.62.

  • The S&P ended up 8.99 points, or 0.82 percent, to finish at 1,102.66.

  • The NASDAQ added 23.58 points, or 1.05 percent, to 2,269.47.

For the week, the Dow advanced 3.24 percent, the S&P jumped 3.55 percent and the Nasdaq surged 4.15 percent.

And in other world markets on Friday:

  • The German DAX rose 24.19 points to 6,166.34.

  • The Paris CAC 40 advanced 6.48 points to end at 3,607.05.

  • The London FTSE 100 edged down 1.19 points to 5,312.62.

For the week, the DAX added 2.09 percent, the CAC 40 climbed 3.05 percent and the FTSE 100 rose 2.98 percent.

Wall Street rallied to its best close in a month as Europe’s stress test did little to shift focus away from mostly upbeat quarterly results, Conway G. Gittens reports on the tests, stock gains, oil prices and other weekly business news in this Reuters video.

Bullion and Business Articles

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

  • US Mint Bullion Gold Eagles Top 700K, Silver Eagles Top 20M
    Demand picked up last week for American numismatic coins as compared to the prior United States Mint sales report which showed just four products registered week-over-week gains.

    The latest round of numbers have all but ten U.S. Mint products surpassing prior sales, with seven of those coming from smaller Presidential $1 coin offerings.

    The bigger dollar items that fell lower were three of the eight First Spouse Gold Coins — both Jane Pierce Fillmore $5 gold coins retreated, as did the proof Margaret Taylor. Prices for all coins in the series were adjusted lower by $25 late Wednesday afternoon, which should help lift their numbers this week …

  • 2010 Proof Gold Eagle Production Likely?
    A House of Representatives subcommittee hearing on Tuesday revealed better odds in minting proof and uncirculated 2010 American Silver Eagle coins. But what about 2010 proof American Gold Eagles?

    As a reminder, the 2009 versions of these numismatic coins were canceled as the United States Mint focused its resources and available coin blank or planchet supplies on producing bullion coins.

    During the hearing, U.S. Mint Director Ed Moy spoke of his support for legislation that would redirect a portion of silver planchets from legally mandated bullion coins to discretionary proof and uncirculated silver dollars…

 

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