Gold, Silver Drop After Fed Ends 6-Year QE Program

by CoinNews.net on October 29, 2014 · 2 comments

Silver bullion bar

Gold dropped back after Fed ends QE

Gold closed lower Wednesday, and then dropped further when the Fed announced the end of its bond-buying program and signaled stronger confidence in the economy.

Gold for December delivery declined $4.50, or 0.4%, to settle at $1,224.90 an ounce on the Comex division of the New York Mercantile Exchange. In later electronic trade, gold prices tumbled toward $1,211 an ounce.

"Gold prices traded solidly lower and hit a three-week low Wednesday afternoon, in the immediate aftermath of the latest FOMC statement that was deemed a bit hawkish on U.S. monetary policy," Jim Wyckoff, a senior analyst at Kitco Metals Inc., said in a report. "The U.S. dollar index also surged on the FOMC statement, which also worked to put downside price pressure on gold."

Gold prices during normal hours traded from a low of $1,220.80 to a high of $1,230.40.

Silver for December delivery rose 4 cents, or 0.2%, to $17.26 an ounce, trading between $17.13 and $17.32. Silver prices closed in on $17.00 an ounce in after-hours trading.

In rounding out the precious metals complex:

  • January platinum turned up $2.90, or 0.2%, to $1,269.20 an ounce, ranging from $1,265 to $1,276.90.

  • Palladium for December delivery gained $7.35, or 0.9%, to $800.70 an ounce, trading between $791.50 and $803.

London Fix Precious Metals

Earlier fixed London precious metals were mixed. In contrasting London bullion Fix prices from Tuesday PM to Wednesday PM:

  • Gold shed $6, or 0.5%, to $1,223.50 an ounce,
  • Silver added 2 cents, or 0.1%, at $17.20 an ounce,
  • Platinum rose $4.50, or 0.4%, to $1,269.50 an ounce, and
  • Palladium added $6, or 0.8%, to $798 an ounce

US Mint Bullion Coin Sales in October

United States Mint coin sales were unchanged Wednesday. Below is a sales breakdown of U.S. Mint bullion products with columns listing the number of bullion coins sold last week, this week so far, last month, in October, and the year to date.

American Eagle and Buffalo Bullion Sales (# of coins)
Wednesday Sales Last Week Current Week September Sales October Sales YTD Sales
$100 American Platinum Eagle Bullion Coins N/A* 2,700 400 16,700
$50 American Eagle Bullion Gold Coins 0 11,500 4,000 50,500 50,500 346,500
$25 American Eagle Bullion Gold Coins 0 1,000 0 6,000 6,000 38,000
$10 American Eagle Bullion Gold Coins 0 0 0 8,000 8,000 100,000
$5 American Eagle Bullion Gold Coins 0 10,000 0 30,000 40,000 480,000
$50 American Buffalo Bullion Gold Coins 0 3,500 500 14,500 21,000 160,500
$1 American Eagle Silver Bullion Coins 0 840,000 425,000 4,140,000 4,365,000 36,616,000
Great Smoky Mountains National Park 5 Oz Silver Bullion Coins 0 0 0 3,500 0 33,000
Shenandoah National Park 5 Oz Silver Bullion Coins 0 400 0 1,000 400 21,900
Arches National Park 5 Oz Silver Bullion Coins 0 0 0 800 0 22,000
Great Sand Dunes 5 Oz Silver Bullion Coins 0 1,400 0 4,500 4,200 16,200

 

*The U.S. Mint stopped selling bullion Platinum Eagles on Oct. 1. The agency will begin selling 2015-dated issues in early January.

{ 2 comments… read them below or add one }

Kevin October 31, 2014 at 1:50 am

I am really tired of the paper futures contracts influencing the price of physical….mainly due to the fact I’m out of extra investable cash. 🙁

Kevin October 31, 2014 at 7:27 am

Buying opportunity of a lifetime as prices continue downward overnight. Jon Nadler probably soiled himself with delight.

Leave a Comment