Bullion & Business Weekend Report – Dec. 12

Precious metals retreated in the U.S. on Friday and ended lower around the world for the week as gold tracked opposite of the dollar’s movement and the other metals followed the yellow metal. Silver declined the most, with weekly losses of more than 7 percent. Gold was in the middle while platinum declined the least. Crude oil also plunged more than 7 percent. In stocks, major US indexes rose on Friday but ended mixed for the week. European indexes finished the week lower.

In London bullion weekly prices, gold declined 5.6 percent, silver plummeted 7.0 percent and platinum retreated 2.9 percent.

In New York precious metals this week, gold fell 4.2 percent, silver tumbled 7.7 percent and platinum ended down 1.9 percent.

Friday and weekly dollar figures follow:

London gold was fixed at $1,124.00 an ounce, falling $66.25 this week. New York gold for February delivery finished at $1,119.90 for a weekly loss of $49.60.

London silver closed to $17.51 an ounce, ending down $1.32 from last Friday’s close. New York silver futures for March delivery ended at $17.090, plunging $1.43 on the week.

London platinum ended at $1,429.00 an ounce, retreating $43.00 since last Friday’s close. New York platinum for January delivery closed to $1,422.70, falling $27.00 on the week.

Notable bullion quotes follow:

"Gold is quickly approaching a key support level of $1,070 to $1,100," Brian Kelly, chief executive of Kanundrum Research, a commodities and macroeconomic research firm, said on MarketWatch. Kelly said gold will be more volatile next week as traders position for the Federal Reserve meeting.

"Clearly, dollar strength will make more recent gold buyers wonder if they have done the right thing. The action of investors will depend upon how committed they are to the long-term bull story in gold," Rick Bensignor, chief market strategist of broker Execution LLC in New York, was quoted on Reuters.

"A hefty rise was noted in the greenback, immediately following the release of US retail sales, which rose by a better-than-expected 1.3% in November," wrote Jon Nadler, senior analyst at Kitco Metals, Inc. "Profit-taking and book-squaring also contributed to a sharp, $19.50 drop in bullion prices to a low of $1110.40 bid before 10:30 NY time."

Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

To follow are silver, gold and platinum performance charts, oil news, week-ending stock summaries, and precious metal article summaries.

London Fix Charts: Silver, Gold and Platinum
(Dec 4 – 11)

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).

London Fix Prices

Weekly World Business News: Oil, Gasoline, and Stocks Prices

Crude oil prices fell "after better-than-expected U.S. retail sales and consumer sentiment data boosted the dollar and weighed on commodities that are priced in the U.S. currency," reported Moming Zhou and Polya Lesova of MarketWatch.com.

"If the dollar continues to strengthen, we are going to see more of the financial interest leave commodities," Rick Mueller, a director of oil markets at Energy Security Analysis Inc. in Wakefield, Massachusetts, said on Bloomberg. "Fuel supplies are very high in the U.S. and demand is weak."

New York crude oil for January delivery fell 67 cents, or 0.9 percent, to $69.87 a barrel. For the week, oil ended down $5.60, or 7.4 percent.

Prices at the pump fell nearly a penny (eight-tenths of a cent) from Friday to Saturday. The national average for regular unleaded gasoline was $2.615 a gallon, according to a AAA fuel report. The price is 2.3 cents lower than last week, 3.5 cents down from a month back, and 95.9 cents more than a year ago.

U.S. stocks moved higher Friday as "A better-than-expected reading on consumer spending and sentiment propels the blue chip average to the highest point in 14 months," reported Alexandra Twin of CNNMoney.com. "But a strong dollar limits gains."

For the week, the Dow gained 0.8 percent, the S&P added less than 0.1 percent, and the Nasdaq lost 0.2 percent.

Friday figures for the three major US indexes follow:

• The Dow jumped 65.67 points to close at 10,471.50.

• The S&P rose 4.06 points, closing at 1,106.41.

• The NASDAQ declined 0.55 points to finish at 2,190.31.

And in other world markets:

• The German DAX surged 47.27 points to close at 5,756.29.

• The Paris CAC 40 advanced 5.34 points, to close at 3,803.72.

• And the London FTSE 100 gained 17.20 points to finish at 5,261.57.

Wall Street had a mixed finish despite signs in Washington a sweeping financial overhaul is one step closer to reality. Conway Gittens of Reuters reports on this, world stocks and other business news in the following video. Soundbite is William Rodgers, Professor at Rutgers University.

Bullion and Business Articles

In related silver and gold news, interesting or quick-read articles from the week include:

• Gold hits one-month low, down for second week – MarketWatch
  Gold futures fell Friday to the lowest level in nearly one month, marking their second weekly loss, as upbeat retail and consumer-sentiment data pushed the U.S. dollar sharply higher, curbing gold’s appeal as bulwark against currency depreciation. Gold for December delivery fell $6.30, or 0.6%, to end at $1,119.40 an ounce on the Comex division of the …

• Platinum, Palladium Futures Fall as Gold Drops on Dollar Rally – Bloomberg
  Platinum and palladium fell in tandem with gold as the dollar’s rally eroded demand for the precious metals as alternative assets. The greenback climbed as much as 0.9 percent against a basket of major currencies. Gains in U.S. retail sales and consumer confidence triggered speculation that the Federal Reserve will increase interest rates next year. Gold futures declined …

• Friday The 4th Part II – Jon Nadler, Kitco
  The US dollar had eased back to under the 76-mark on the trade-weighted index as risk appetite staged a comeback very early on Friday morning. Said appetite was fueled by a near-20% rise in China’s industrial output last month, as against levels seen one year ago. Such news soon lifted equities and commodities in overseas markets and set the stage for a recovery in gold prices …

• Silver and Platinum Strong, Sets Top 600K – CoinNews
  The latest US Mint sales report shows stronger demand for proof and uncirculated sets, higher interest in all silver coins, and opening figures for three recently released products. In a quick review of the new products: 7,207 of the allotted 8,000 American Platinum Eagle Proof Coins were purchased by collectors in four days. In contrast, the Mint sold 4,769 of the one ounce 2008-dated coins through all of last year. Given that the new eagles are the only platinum option available from the Mint this year — no bullion versions, fractional sizes …

• US Mint Silver Coin Sales Rise – Silver Coins Today
  It is rare when it can be said that the US Mint’s entire collection of silver coin products improved over prior weekly gains. That is exactly what happened according to the latest United States Mint sales report covering from Nov. 30 to Dec. 6. Sales were driven higher during the period by record silver prices, traditional holiday purchases, and collector recognition that several commemorative coin offerings would soon be gone forever …

• 2009 Platinum Eagle Proof Coin Sold Out – WorldMintCoins.com
  The only US Mint platinum coins for the year were released late, but sold out early. Collectors purchased the maximum 8,000 minted 2009 American Platinum Eagle Proof Coins in a span of a week, despite their rather hefty $1,792 price, and a five per household order limit. The sellout was not exactly surprising. Over 7,200 eagles were sold in the first four days of issue — they launched on …

• 2009 Gold Eagle Coins to Return – CoinNews
  A week after announcing the inventory depletion and temporary suspensions of 2009 American Gold Eagle bullion coins, the United States Mint today provided follow-up information on the return of the one ounce and fractional sizes, as well as an update for how long they will available. Fractional Gold Eagles in 1/2 oz, 1/4 oz and 1/10 oz sizes will be released on Monday …

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