Bullion Weekly Prices Soar, Stocks Dip

by CoinNews.net on October 2, 2010 · 0 comments

Weekly Bullion and Business News Precious metals rallied Friday, capping a third straight week of gains. A slumping dollar and expectations of quantitative easing from the Fed continued to drive gold to new records and silver to fresh 30-year highs.

The yellow metal started October by reaching all-time high at $1,322.00 an ounce. Silver hit its best price since 1980 at $22.17 an ounce.

In other markets, oil scored its biggest weekly gain since February and rallied to a seven-week high above $81 a barrel while U.S. stocks climbed on Friday but edged slightly lower for the week.

In U.S. bullion prices, gold for December delivery closed to $1,317.80 an ounce, rising $8.20, or 0.6 percent, on the Comex division of the New York Mercantile Exchange. It gained $19.70, or 1.5 percent, for the week after rising 1.6 percent last week and 4.7 percent in September.

"Gold is continuing to propel itself higher on the weakness of the dollar," Adam Klopfenstein, a senior market strategist at Lind-Waldock, a broker in Chicago, said and was cited on Bloomberg. "The Fed now wants to see inflation, and they’re going to step in and prop up the bond market. If you’re a coupon clipper in the bond market, you’re going to want to go with assets with higher returns, like gold."

Silver for December delivery surged 23.9 cents, or 1.1 percent, to close at $22.060 an ounce. It soared 66.1 cents, or 3.1 percent, this week after jumping 2.8 percent last week and 12.3 percent in September.

"Precious metals prices continued their upward climb this week and the outlook for more gains is likely next week as ideas of more quantitative easing from the Federal Reserve remain at the forefront," noted Debbie Carlson of Kitco News. "Still, traders do warn of the potential for profit-taking as gold and silver rest in rarified air, which could lead to sharp losses and volatile trade." Carlson added that "Even if profit-taking occurs, the larger trend for precious metals remains up as the concerns over fiat currency and sovereign debt hold."

Platinum for January delivery added $23.50, or 1.4 percent, to end at $1,682.10 an ounce. It jumped $36.70, or 2.2 percent, this week after gaining 1.4 percent last week and 8.9 percent in September — the most since November.

Palladium for December delivery advanced $3.65, or 0.6 percent, to close Friday at $574.90 an ounce. It soared $14.40, or 2.6 percent, this week after surging 2.7 percent last week and 13.8 percent in September.

In London bullion weekly prices, the gold Fix was $1,316.25 an ounce, adding $19.25, or 1.5 percent. Silver was $21.950 an ounce for an increase of 60 cents, or 2.8 percent, this week. Platinum was $1,679.00 an ounce, rising $34.00, or 2.1 percent. And palladium was $571.00 an ounce, advancing $9.00, or 1.6 percent.

7-Day United States Mint Bullion Coin Sales

The week has been hot for U.S. Mint bullion coins. Sales ticked up across all American Eagles, including fractional Gold Eagles. The one-ounce sizes were the biggest gainers, with one-ounce Gold Eagles advancing 29,500 versus the prior 23,000 and one-ounce Silver Eagles soaring 985,000 compared to 830,000.

In related silver bullion coin news, the Mint on Thursday increased Silver Eagle premiums from $1.50 per coin to $2.00. The last time prices were raised was on February 9, 2010, when they rose 10 cents.

In returning to coin sales, the one-ounce eagles were the only bullion coins to show an increase during the first day in October, as the following tables illustrates:

U.S. Mint 2010 Bullion Coin Sales
October Weekly Gain 2010 Totals
American Eagle Gold 1 oz 5,000 29,500 892,500
American Eagle Gold 1/2 oz 0 1,000 36,000
American Eagle Gold 1/4 oz 0 4,000 54,000
American Eagle Gold 1/10 oz 0 10,000 355,000
American Buffalo Gold 1 oz Sold Out 209,000
American Eagle Silver 1 oz 325,000 985,000 25,805,500

 

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

(September 24 – October 1)




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).

September London Fix Precious Metals Prices

(September 24 – October 1)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
2.8%
$0.60
$21.950
Gold
X
 
1.5%
$19.25
$1,316.25
Platinum
X
 
2.1%
$34.00
$1,679.00
Palladium
X
 
1.6%
$9.00
$571.00

 

(September 17-24)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
2.4%
$0.50
$21.350
Gold
X
 
1.8%
$23.00
$1,297.00
Platinum
X
 
1.7%
$27.00
$1,645.00
Palladium
X
 
2.7%
$15.00
$562.00

 

(September 10-17)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
4.8%
$0.95
$20.850
Gold
X
 
2.2%
$27.50
$1,274.00
Platinum
X
 
4.7%
$73.00
$1,618.00
Palladium
X
 
5.6%
$29.00
$547.00

 

(September 3 – 10)

 
Up
Down
Week % Change
Week $ Change
Friday Close
Silver
X
1.2%
$0.24
$19.900
Gold
X
 
0.5%
$6.00
$1,246.50
Platinum
 
X
-0.5%
-$8.00
$1,545.00
Palladium
 
X
-1.1%
-$6.00
$518.00
*Week change numbers are for Friday PM-Friday PM (Unless a time is closed for holidays)

Business News: Oil, Gasoline, and Stock Prices

Crude oil prices surged on Friday. A weaker dollar and positive manufacturing data from China were cited at catalysts.

"The Chinese data spurs hopes of continued strong oil demand in the second-largest consuming country," Carsten Fritsch, a Commerzbank AG analyst in Frankfurt said and was quoted on Bloomberg.

U.S. crude oil for November delivery advanced $1.61, or 2.0 percent, to $81.58 a barrel. Prices soared $5.09, or 6.7 percent, for the week after surging $2.83, or 3.8 percent, last week and 11.2 percent in September.

Prices at the pump fell sixth-tenths advanced a penny between Friday and Saturday. The national average for regular unleaded gasoline is $2.702 a gallon, according to the daily AAA fuel report. The price is two-tenths of a cent lower than last week, 2.6 cents more than the price from a month back, and 23.7 cents higher than a year ago.

U.S. stocks rose on Friday "building on the biggest September rally since 1939, as higher-than-estimated consumer spending and confidence bolstered optimism in the economic recovery," wrote Inyoung Hwang of Bloomberg.

Friday closing figures for the three major U.S. indexes follow:

  • The Dow ended up 41.63 points, or 0.39 percent, to 10,829.68.

  • The S&P added 5.04 points, or 0.44 percent, to close at 1,146.24.

  • The NASDAQ rose 2.13 points, or 0.09 percent, to 2,370.75.

For the week, however, the Dow lost 0.28 percent, the S&P 500 declined 0.21 percent, and the Nasdaq fell 0.44 percent. For the month of September, the Dow rallied 7.7 percent, the S&P jumped 8.7 percent, and the Nasdaq surged 12.0 percent.

And in other world markets on Friday:

  • The German DAX fell 17.68 points to 6,211.34.

  • The Paris CAC 40 declined 23.09 points to end at 3,692.09.

  • The London FTSE 100 added 44.28 points to 5,592.90.

For the week, the DAX retreated 1.38 percent, the CAC 40 ended down 2.39 percent and the FTSE 100 lost 0.10 percent.

U.S. Week Ahead Business Video by Reuters

Friday’s jobs report could provide fresh clues on further Fed QE plans according to Reuters editors. Also watch out for interviews from market movers at the Reuters global private banking summit. These topics and more are covered in the following "The week ahead" Reuters business video:

Bullion and Economic Articles

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

  • American Eagle Palladium Bullion Coin Act Introduced in House
    Placing the United States Mint one step closer to striking a new precious metal American Eagle, legislation was introduced Wednesday, September 22, 2010, calling for new palladium versions of the coin to be produced. Referred to as the American Eagle Palladium Bullion Coin Act of 2010, numbered H.R. 6166, the legislation was introduced by …

  • US Mint Sales: Bullion Coins Hot
    Make it a streak of two. United States Mint product sales improved for a second straight week. Record gold prices, 30-year high silver prices, and the debuting of two new numismatic products certainly supported the numbers. All but one U.S. Mint bullion coin shot higher. The exception was the…

 

{ 0 comments… add one now }

Leave a Comment