Gold Tops $1400, Silver Jumps Above $30


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Gold prices rallied 1.6 percent to above $1,400 an ounce on Tuesday, lifted by a falling U.S. dollar. An unexpected drop in U.S. consumer confidence, lower-than-expected home price data, and weak demand at an auction for 5-year notes were among cited factors for pulling down the greenback and raising the appeal of precious metals.

"We are long of gold in non-U.S. dollar terms, and now we wish to add to the position by buying gold in U.S. dollar terms," Independent investor Dennis Gartman said in his daily Gartman Letter which was cited on Reuters.

"This is consistent with our thesis that gold is, at the margin, becoming a reservable asset of greater interest by the reserve banks of Asia, Africa and likely also South America. At the margin, they are increasing their gold holdings at the expense firstly of the EUR (euro) and now of dollars."

Silver rallied the most in precious metals, jumping 3.7 percent. Palladium followed at 2.6 percent while platinum came in last at 0.9 percent.

  • Gold prices for February delivery advanced $22.70 to $1,405.60 an ounce on the Comex in New York. Prices ranged from $1,383.10 to $1,407.50. Gold prices are up 28 percent this year.
  • March silver prices soared $1.068 to $30.323 an ounce. They ranged from $29.280 to $30.370. Silver prices are 80 percent higher in 2010.
  • Platinum prices for January delivery added $16.20 to $1,757.20 an ounce. Platinum ranged between $1,742.00 and $1,765.10. Platinum is 20 percent higher this year.
  • Palladium prices for March delivery surged $20.10 to settle at $787.20 an ounce. Palladium ranged from $768.95 to $790.75. Palladium has soared 93 percent in 2010.

The U.S. Mint has not published bullion coin sales figures that have shown gains since Wednesday. It did reveal that it has sold all of its 5-ounce America the Beautiful Silver Bullion Coins. For more on that, read the previous article US Mint Sells Entire Mintage of 2010 ATB Silver Bullion Coins.

The following are the latest United States Mint sales figures:

U.S. Mint 2010 Bullion Coin Sales
December* 2010 Totals
American Eagle Gold Coin (1 oz) 55,500 1,140,000
American Eagle Gold Coin (1/2 oz) 1,000 46,000
American Eagle Gold Coin (1/4 oz) 2,000 62,000
American Eagle Gold Coin (1/10 oz) 5,000 390,000
American Buffalo Coin (1 oz) Sold Out 209,000
American Eagle Silver (1 oz) 1,772,000 34,662,500


Sales have an "as of date" of December 23.

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