Gold Prices Hit 3-Week High, Silver Jumps 3.5%

by CoinNews.net on May 24, 2011 · 0 comments

Fine Gold BarsU.S gold prices continued to march higher Tuesday, closing up 0.5 percent and to a three-week high. Silver rallied 3.5 percent and to its best settlement price in two weeks. Euro zone debt concerns and a weaker U.S. dollar precipitated precious metals gains, opined analysts.

June gold prices rose $7.90 to $1,523.30 an ounce on the Comex in New York — its best close since May 3. Gold prices hit a low of $1,513.20 and a high of $1,529.00.

"There is so much uncertainty that the downside risk for gold is low in the short term," noted VTB Capital analyst Andrey Kryuchenkov, according to Reuters. "People are still frightened about Portugal and about a possible restructuring of the Greek debt so safe haven flows will continue," he said.

Silver prices for July delivery surged $1.224 to $36.128 an ounce, trading between $34.880 and $36.400. The close was silver’s best since May 10.

"As for silver, the so-called "sideways meander" that began on or around May 12 is still presenting the white metal with a chance of rising back to as high an area as the $39 to $43 value zone before it too resumes the larger declining pattern that could take it down to at least the just-sub-$30 level," noted Jon Nadler, Senior Analysts at Kitco Metals Inc.

"The pivot point to watch at this moment would be $36.50 — a point which, if taken out, could usher in the rise to the aforementioned $40+ zone. Breaking last week’s $32.98 low however would imply the opposite scenario."

Platinum prices for July delivery gained $6.60, or 0.4 percent, to $1,762.50 an ounce. Platinum moved between $1,753.00 and $1,772.00.

Palladium prices for June delivery rose $3.45, or 0.5 percent, to settle at $735.25 an ounce. Prices touched a low of $729.20 and reached as high as $743.25.

London precious metals rose across the board as well. When comparing London fixing prices on Tuesday (PM) from those on Monday (PM), gold prices climbed $16.50 at $1,527.00 an ounce, silver added $1.150 to $35.850 an ounce, platinum rose $9.00 at $1,759.00 an ounce, and palladium advanced $16.00 to $739.00 an ounce.

The most recent United States Mint bullion sales show gains in its largest American Eagle coins, with the 1-ounce Gold Eagle up 3,000 and the 1-ounce Silver Eagle up 52,500. The United States Mint also published the opening day sales of the just released Olympic 5-ounce silver coin. Issued Monday, buyers ordered 60,700 of the .999 fine silver coins.

US Mint 2011 Bullion Coin Sales
Daily
Gains
May
2011
YTD
2011
Gold Eagle Coin (1 oz.) 3,000 87,500 445,500
Gold Eagle Coin (1/2 oz.) 0 22,000 55,000
Gold Eagle Coin (1/4 oz.) 0 4,000 56,000
Gold Eagle Coin (1/10 oz.) 0 15,000 215,000
Gold Buffalo Coin (1 oz.) 0 13,500 72,000
Silver Eagle (1 oz.) 52,500 2,949,000 18,197,000
ATB Silver Bullion (5 oz.)* 60,700 88,700 314,100

 

*The ATB Silver bullion coin sales figures are generally released once a week on Tuesday’s. The daily increase represents those from Monday.

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