Gold, Silver Rise on Fed Rate Pledge; US Gold Coins Gain

by CoinNews.net on December 12, 2012 · 0 comments

Fine gold bar, US $100 bills

Gold advanced 0.5% and silver rallied 2.3% on Wednesday

Gold, silver and other precious metals advanced Wednesday after the Federal Reserve announced a new bond-buying program and said it would hold interest rates near zero until the U.S. unemployment rate drops to 6.5%. (Read the FOMC release.)

Gold for February delivery gained $8.30, or 0.5%, to $1,717.90 an ounce on the Comex in New York. Gold traded between $1,708.50 and $1,725.00.

"The Federal Reserve said Wednesday it decided to end its "Operation Twist" program but extend its long-bond-buying program to the tune of $45 billion a month… The new plan would expand the Fed’s balance sheet and be ostensibly the printing of greenbacks," noted Jim Wyckoff in the PM Kitco Metals Roundup.

As for binding interest rates to unemployment rates, Wyckoff adds that "some quick math on that matter suggests the Fed will not be raising interest rates for at least three more years," noting the developments "were bullish for the raw commodity markets."

Silver was the strongest performer in precious metals Wednesday. March silver closed at $33.782 an ounce, surging 76.5 cents or 2.3%. Silver traded between $32.995 and $33.875.

In other New York metal futures:

  • Platinum for January delivery edged up $6.40, or 0.4%, to $1,646.40 an ounce, ranging from $1,631.40 to $1,647.50.

  • March palladium added $4.35, or 0.6%, to $701.15 an ounce, trading between $693.20 and $702.00.

London Bullion Prices

Modest precious metals changes occured in London Wednesday as the Fed news came after the day’s fixings. In contrasting the most recent precious metals PM fixings:

  • Gold added $6.25, or 0.4%, to $1,716.25 an ounce,
  • Silver shed 7.0 cents, 0.2%, to $33.10 an ounce,
  • Platinum gained $8.00, or 0.5%, to $1,639.00 an ounce, and
  • Palladium climbed $2.00, or 0.3%, to $697.00 an ounce

US Mint Bullion Coin Sales in December

The single gainer Wednesday among U.S. Mint bullion products was a 4,000 increase for the American Eagle gold coin. A breakdown of the latest sales follows.

US Mint American Eagle and Buffalo Bullion Coin Sales
  Wednesday Sales Last Week Week-To-Date Dec Sales YTD 2012
$50 American Eagle Gold Coins 4,000 24,500 6,500 31,000 625,000
$25 American Eagle Gold Coins 0 2,000 0 2,000 70,000
$10 American Eagle Gold Coins 0 4,000 0 4,000 74,000
$5 American Eagle Gold Coins 0 0 0 0 315,000
$50 American Buffalo Gold Coins 0 4,000 0 4,000 128,000
American Silver Eagle Coin 0 903,000 300,000 1,203,000 33,310,500

 

America the Beautiful 5 Oz. Silver Bullion Coin Sales
  Wednesday Sales Last Week Week-To-Date Dec Sales All-Time Total
2012 El Yunque National Forest 5 oz. Silver Bullion Coins 0 2,000 0 2,000 21,900
2012 Chaco Culture National Historical Park 5 oz. Silver Bullion Coins 0 0 0 0 20,000
2012 Acadia National Park 5 oz. Silver Bullion Coins 0 0 0 0 25,400
2012 Hawai’i Volcanoes 5 oz. Silver Bullion Coins 0 0 0 0 20,000
2012 Denali National Park 5 oz. Silver Bullion Coins 0 0 0 0 20,000
2011 Olympic National Park 5 oz. Silver Bullion Coins 0 0 0 0 85,900
2011 Vicksburg National Military Park 5 oz. Silver Bullion Coins 0 0 0 0 39,500
2011 Chickasaw Park 5 oz. Silver Bullion Coins 0 0 0 0 29,700
TOTAL 0 2,000 0 2,000 262,400

 

Sales above are in the number of coins sold. Calculate total ounces by using the weight of the coin.

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