Gold Prices Rebound Modestly, Silver Recovers 2.9%


Fine Gold BarsPrecious metals rebounded Thursday from the previous day’s trouncing. Gold’s recovery was weakest at a modest 0.6% while silver led the metals with a daily pick-up of 2.9%.

"We think a large part of why gold conceded so much (Wednesday) came down to three other factors – $1,800 was proving to be too much of a hurdle and a certain staleness had entered the market; positioning had increased very swiftly in recent weeks; and physical demand has been non-existent," said UBS in a note cited on Reuters. "What the physical community do from here is hugely important," he added.

After dropping by more than $77 on the previous day, gold prices added $10.90 to $1,722.20 an ounce in the April futures contract on the Comex in New York. Gold bracketed a low and high of $1,695.10 and $1,726.40.

"Precious metals opened with gains this morning as market participants were hard at work trying to repair at least part of the substantial damage that was incurred on Wednesday," writes Jon Nadler, Senior Analyst at Kitco Metals Inc.

"A knee-jerk reaction was to be expected after such a rout, but there is still apprehension in the pits related to margin calls, a change in open interest, and the upcoming ‘slow’ seasonal period in gold (extending up to May/June)."

Silver prices for May delivery rebounded $1.019 to $35.661 an ounce, trading between $34.455 and $35.705. The white metal was off $2.563 on Wednesday.

Platinum prices for April delivery added $8.50, or 0.5%, to settle at $1,701.10 an ounce, ranging from $1,677.00 to $1,704.30.

Palladium prices for June delivery advanced $8.35, or 1.2%, to $716.75 an ounce, ranging from $699.00 to $719.60.

London Precious Metals

Earlier fixed London precious metals were playing catch-up to Wednesday losses in New York as prices dropped significantly. When comparing the London PM fixings between Wednesday and Thursday, gold prices fell $56.00 to $1,714.00 an ounce, silver declined $2.67 to $34.56 an ounce, platinum lost $40.00 to $1,686.00 an ounce, and palladium retreated $19.00 to $703.00 an ounce.

U.S. Mint Bullion Coins

The U.S. Mint’s most popular bullion coins have advanced for four straight days now, with the American Silver Eagle jumping 200,000 and the one ounce American Gold Eagle surging 8,500, representing 43% of the bullion coin’s entire gain in February.

The following are the latest available monthly and year-to-date bullion sales figures.

Sales of U.S. Mint American Eagle and Buffalo Bullion Coins
  March Gains YTD 2012
American Gold Eagles (1 oz.) 8,500 113,000
American Gold Eagles (1/2 oz.) 0 49,000
American Gold Eagles (1/4 oz.) 0 40,000
American Gold Eagles (1/10 oz.) 0 90,000
American Gold Buffalo Coin (1 oz.) 0 20,500
American Silver Eagles 200,000 7,797,000


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 0 0 37,300
Chickasaw Park 5 oz. Silver Coin 0 300 28,400
TOTAL 0 0 150,300


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 generally publish daily sales figures for its five-ounce silver coins. These latest sales are as of Monday, February 27, 2012.

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