Gold futures rallied nearly $50 Tuesday and closed above $1,700 an ounce as fresh concerns surfaced over Europe’s debit crisis.
"People are realizing that the European situation is not resolving itself, and it’s coming to the forefront again," Reuters earlier quoted Zachary Oxman, managing director at futures broker TrendMax.com. "If we can close above $1,700, I think we will see a meaningful jump in the next few weeks and $1,900 is very possible again."
Gold prices soared $48.10, or 2.9 percent, to $1,700.40 an ounce in the December futures contract on the Comex in New York. The yellow metal traded between an intraday low of $1,644.60 and a high of $1,704.70.
"Gold is getting support because there is a general consensus that there will be Fed-induced stimulus to support growth in U.S. at a time when Europe may go into recession because of the debt crisis," Paul Dietrich, the chief executive officer of Foxhall Capital Management Inc., said in a telephone interview that was cited on Bloomberg. "And that may be inflationary."
Silver prices for December delivery surged $1.408, or 4.4 percent, to settle at $33.052 an ounce. The white metal ranged from $31.355 to $33.335. Jim Wyckoff of Kitco Metals Inc. writes in the Tuesday Kitco Roundup about silver’s near-term technicals:
"December silver futures prices closed nearer the session high Tuesday and hit a fresh four-week high as the bulls also gained fresh upside near-term technical momentum to re-establish a five-week-old uptrend on the daily bar chart.
The silver bulls now have the overall near-term technical advantage. Silver bulls’ next upside price objective is producing a close above strong technical resistance at $33.585 an ounce.
The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $29.935. First resistance is seen at Tuesday’s high of $33.335 and then at $33.585. Next support is seen at $32.50 and then at $32.00.
Wyckoff’s Market Rating: 6.0."
Platinum prices for January delivery closed to $1,568.80 an ounce, advancing $26.80, or 1.7 percent, as prices moved during the day from a low of $1,539.00 to a high of $1,571.70.
Palladium prices for December delivery added $13.60, or 2.1 percent, to settle at $652.10 an ounce. Palladium traded between $632.30 and $654.85.
London Precious Metals
London precious metals rose as well, but modestly in contrast to bullion futures market in New York. When comparing London Fix prices on Tuesday (PM) from those on Monday (PM), gold added $4.00 to $1,656.00 an ounce, silver climbed 30.0 cents to $32.00 an ounce, platinum advanced $6.00 to $1,543.00 an ounce and palladium added $6.00 to $637.00 an ounce.
U.S. Mint Bullion Coin Sales
American Silver Eagles were the only U.S. Mint bullion coins to rise Tuesday, although each of the major bullion products were reported higher by the Mint late Monday. The latest daily and year-to-date sales figures follow:
| Sales of U.S. Mint American Eagle and Buffalo Bullion Coins | ||||
|---|---|---|---|---|
| Monday Gains | Tuesday Gains | October Gains | YTD 2011 | |
| Gold Eagle Coin (1 oz.) | 2,000 | 0 | 41,000 | 801,000 |
| Gold Eagle Coin (1/2 oz.) | 1,000 | 0 | 3,000 | 65,000 |
| Gold Eagle Coin (1/4 oz.) | 2,000 | 0 | 6,000 | 78,000 |
| Gold Eagle Coin (1/10 oz.) | 5,000 | 0 | 10,000 | 355,000 |
| Gold Buffalo Coin (1 oz.) | 500 | 0 | 12,500 | 145,000 |
| American Silver Eagle (1 oz.) | 167,000 | 125,000 | 2,924,000 | 36,355,500 |
| Sales of America the Beautiful 5 Oz. Silver Bullion Coins* | |
|---|---|
| YTD 2011 |
|
| Gettysburg National Military Park 5 oz. Silver Coin | 126,700 |
| Glacier National Park 5 oz. Silver Coin | 126,700 |
| Olympic National Park 5 oz. Silver Coin | 82,200 |
| Vicksburg National Military Park 5 oz. Silver Coin | 31,500 |
| Chickasaw Park 5 oz. Silver Coin | 21,600 |
| TOTAL | 389,700 |
*The as of date for sales of U.S. Mint America the Beautiful Five Ounce Silver Bullion Coins is Monday, October 24, 2011. The Mint does not publish daily sales for its 5-ounce coins.
