U.S. gold futures closed to a new record and advanced for a second straight day Tuesday, supported by safe-haven demand that ignited after weak economic data came out of the European Union.
"The short-term outlook for gold remains positive as there are still far too many macro uncertainties at the moment with softening economic readings," wrote Andrey Kryuchenkov, analyst with VTB Capital in London, in a note that was cited on MarketWatch.
"With the [gold] market still fairly long, there could be further attempts at position squaring," said Kryuchenkov. "However, we still believe any correction is likely to be short-lived for now with the U.S. currency most likely staying fairly soft."
December gold prices advanced $27.00, or 1.5 percent, to close at an all-time record high of $1,785.00 an ounce on the Comex in New York. Prices swung from $1,763.60 to $1,789.80. Gold has surged 25.6 percent in 2011. Some market watchers are wary of the yellow metal given its fast-paced run.
"There is little doubt in my mind that gold is at a bubble which means that it will burst at any time," Reuters quoted Erik Davidson, deputy chief investment officer for Wells Fargo Private Bank, which has $210 billion assets under management.
Silver prices for September delivery rose 51.2 cents, or 1.3 percent, to $39.819 an ounce. Silver prices moved from $39.290 to $40.175. They are up 28.7 percent this year. Jim Wyckoff of Kitco Metals Inc. wrote the following of silver in the Tuesday Kitco Metals Roundup:
"December silver futures prices closed near mid-range Tuesday. Prices have worked up from the August low and bulls have regained some upside momentum. The silver bulls do have the overall technical advantage.
Bulls’ next upside price objective is producing a close above solid technical resistance at last week’s high of $40.405 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of $37.055.
First resistance is seen at $40.405 and then at $41.00. Next support is seen at Tuesday’s low of $39.33 and then at $39.00. Wyckoff’s Market Rating: 6.0."
Platinum prices for October delivery gained $20.90, or 1.2 percent, to settle at $1,818.10 an ounce. Platinum traded between $1,810.00 and $1,828.00.
Palladium prices for September delivery rose $10.15, or 1.4 percent, to close at $756.50 an ounce. Palladium ranged from $741.85 to $758.05.
London Precious Metals Prices
London bullion prices were mixed. When comparing London PM fixing prices from Tuesday over Monday, gold advanced $43.50 to $1,782.50 an ounce, silver prices gained 18.0 cents at $39.360 an ounce, platinum advanced $21.00 to $1,811.00 an ounce, and palladium declined $3.00 at $749.00 an ounce.
U.S. Mint Bullion Coin Sales
The United States Mint published gains across each of its one-ounce bullion coins. Sales advanced 3,500 for the American Gold Eagle and 25,000 for the American Silver Eagle. The American Gold Buffalo rose 1,000. The latest Mint bullion product sales figures follow:
|Sales of US Mint American Eagle and Buffalo Bullion Coins|
|Gold Eagle Coin (1 oz.)||3,500||73,000||642,000|
|Gold Eagle Coin (1/2 oz.)||0||3,000||61,000|
|Gold Eagle Coin (1/4 oz.)||0||4,000||68,000|
|Gold Eagle Coin (1/10 oz.)||0||40,000||305,000|
|Gold Buffalo Coin (1 oz.)||1,000||15,500||107,000|
|Silver Eagles (1 oz.)||25,000||1.9845M||27.256M|
|Sales of America the Beautiful 5 Oz. Silver Bullion Coins*|
|Gettysburg National Military Park 5 oz.||126,700|
|Glacier National Park 5 oz.||126,700|
|Olympic National Park 5 oz.||80,700|
|Vicksburg National Military Park 5 oz.||27,500|
|Chickasaw Park 5 oz.||15,200|
*Gettysburg and Glacier America the Beautiful Five Ounce Silver Bullion Coins are sold out. Unlike other investment-grade products, the United States Mint does not provide daily per coin sales totals for the Olympic, Vicksburg, and Chickasaw America the Beautiful Five Ounce Silver Bullion Coins. Their individual totals are as of August 2. The five ounce combined coin totals above (last line) are as of August 15. The figure represents an increase of 1,800 from the previous seven days — the same increase as the previous week.