Gold Hits 6-Week High as Silver, Platinum and Palladium Rally 1.9%


Fine Gold BarsIt was a rallying day of nine’s in percentage gains for precious metals Monday. Gold prices rose 0.9% to close at a six-week high while silver, platinum and palladium each surged 1.9%. Gains in gold were attributed to weakness in the U.S. dollar, technical buying and a "risk-on" sentiment brought on by developments out of the EU.

"Gold is reaching another technical area. An above $1,675 close tonight could mean additional buying this week ahead of option expiration and as traders await the euro zone news," said George Gero, vice president of RBC Capital Markets, according to Reuters.

Gold prices rose $14.30 to $1,678.30 an ounce in the February futures contract on the Comex in New York. The settlement prices was gold’s best since December 9. Gold prices swung from a low of $1,663.00 to a high of $1,681.80.

"The yellow metal has reaffirmed its recent correlation to the euro once again and it does manifest the potential for an extension of its recent upward correction to the $1,700 and just above area," noted Jon Nadler, Senior Analysts at Kitco Metals Inc.

"Much of the strength and longevity of the push towards those higher figures will therefore depend on the flavor of the news coming out of Europe over the next week or so."

Silver prices for March delivery gained 59.5 cents to $32.270 an ounce. Silver moved from an intraday low of $31.790 to a high of $32.775.

Platinum prices for April delivery advanced $28.80 to $1,561.10 an ounce, trading between $1,527.60 and $1,568.90. Palladium prices for March delivery tacked on $13.15 to $688.85 an ounce, ranging from $673.40 to $689.00.

Last week, gold rose 2.0%, silver soared 7.3%, platinum gained 2.9% and palladium surged 6.4%.

London Precious Metals

Earlier fixed London precious metals climbed as well. When comparing the London fixings on Monday (PM) from those on Friday (PM), gold gained $22.50 to $1,675.50 an ounce, silver advanced $2.09 to $32.45 an ounce, platinum added $28.00 to $1,545.00 an ounce and palladium ended up $9.00 to $678.00 an ounce.

U.S. Mint Bullion Coin Demand Remains High

Each of the U.S. Mint’s one ounce bullion coins advanced Monday. The Gold Eagle added 7,500, the Gold Buffalo rose 1,000 and the Silver Eagle surged 250,000. The monthly sales level for the Silver Eagle is currently 875,000 away from matching the all-time record of 6.422 million set in January 2011.

The latest daily and year-to-date U.S. Mint bullion coin sales follow:

Sales of U.S. Mint American Eagle and Buffalo Bullion Coins
  Daily Gains January/YTD 2012
American Gold Eagle Coin (1 oz.) 7,500 75,000
American Gold Eagle Coin (1/2 oz.) 0 46,000
American Gold Eagle Coin (1/4 oz.) 0 32,000
American Gold Eagle Coin (1/10 oz.) 0 75,000
American Gold Buffalo Coin (1 oz.) 1,000 10,500
American Silver Eagle 250,000 5,547,000


Sales of America the Beautiful 5 Oz. Silver Bullion Coins
  Prior Weekly Weekly Gains All-Time Total
Olympic National Park 5 oz. Silver Coin 0 0 84,600
Vicksburg National Military Park 5 oz. Silver Coin 2,000 0 36,300
Chickasaw Park 5 oz. Silver Coin 500 0 27,400
TOTAL 2,500 0 148,300


All bullion coin totals in the above tables are in the number of coins sold, not the amount of ounces. The U.S. Mint does not provide daily sales figures for its 5-ounce silver coins. The latest 5-ounce sales are current as of Tuesday, January 17, 2012.

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