Gold Dips 0.8%, Silver Tumbles 4.7%


Fine Gold BarsGold futures fell for a third straight day Tuesday as strength in the U.S. dollar curbed the appeal of precious metals.

"Gold is behaving erratically with some strong currents pushing it in two directions at once," said Ross Norman, chief executive at London-based bullion broker Sharps Pixley, in emailed comments cited on MarketWatch. "Primarily, it is selling on the strong dollar pushing gold lower, and strong physical and [exchange-traded fund] buying from some investors on the other side pushing gold higher."

Gold prices closed down $13.40, or 0.8 percent, to $1,711.80 an ounce in the December futures contract on the Comex in New York. The day’s low came in at $1,681.20 while the high touched $1,725.60.

Silver prices for December delivery tumbled $1.623, or 4.7 percent, to $32.731 an ounce. Silver ranged between $32.105 and $34.725. Jim Wyckoff of Kitco Metals Inc. writes in the Tuesday Kitco Roundup about silver’s near-term technicals:

"December silver futures prices closed near mid-range Tuesday and saw more profit taking. The silver bulls still have the overall near-term technical advantage, but are fading a bit and need to show fresh power soon. A five-week-old uptrend is still in place on the daily bar chart.

Silver bulls’ next upside price objective is producing a close above solid technical resistance at last week’s high of $35.70 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $31.23.

First resistance is seen at $34.00 and then at Tuesday’s high of $34.725. Next support is seen at $33.00 and then at $32.50. Wyckoff’s Market Rating: 6.0."

Platinum prices for January delivery settled to $1,582.00 an ounce, dropping $25.60, or 1.6 percent. Platinum traded from $1,559.60 and $1,614.10.

Palladium prices for December delivery declined $16.15, or 2.5 percent, to $635.00 an ounce. Prices moved between $624.05 and $650.60.

London Precious Metals

Bullion losses in London were heavy. When comparing London fixings on Tuesday (PM) from those on Monday (PM), gold declined $23.00 to $1,699.00 an ounce, silver fell $1.27 to $32.97 an ounce, platinum stepped back $34.00 to $1,572.00 an ounce, and palladium declined $22.00 to $631.00 an ounce.

U.S. Mint Bullion Coin Sales

The U.S. Mint on Tuesday published sales gains across each of its one-ounce bullion coins as well as its quarter-ounce American Gold Eagle. The latest daily, monthly, and year-to-date U.S. Mint bullion coin sales figures follow:

Sales of U.S. Mint American Eagle and Buffalo Bullion Coins
  Daily Gains November Gains YTD 2011
Gold Eagle Coin (1 oz.) 4,000 4,000 810,000
Gold Eagle Coin (1/2 oz.) 0 0 65,000
Gold Eagle Coin (1/4 oz.) 2,000 2,000 80,000
Gold Eagle Coin (1/10 oz.) 0 0 355,000
Gold Buffalo Coin (1 oz.) 500 500 145,500
American Silver Eagle (1 oz.) 25,000 25,000 36,500,500


Sales of America the Beautiful 5 Oz. Silver Bullion Coins*
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 82,700
Vicksburg National Military Park 5 oz. Silver Coin 31,600
Chickasaw Park 5 oz. Silver Coin 22,300
TOTAL 390,000


*The as of date for sales of U.S. Mint America the Beautiful Five Ounce Silver Bullion Coins is Monday, October 31, 2011. The Mint does not typically publish daily sales for its 5-ounce coins.

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