Gold and Silver Rise Slightly Amid Tamer Inflation

Gold bar chart
Gold edged higher Wednesday despite easing inflation

Gold settled slightly higher for the midweek trading session, snapping a string of two straight daily losses.

Gold prices for December delivery edged up $4.20, or 0.3%, to $1,606.60 an ounce, trading between intraday levels of $1,592.10 and $1,608.80.

"It was yet another quiet, summertime trading day. The market place is awaiting some fresh, market-moving fundamental inputs. But with the dog days of summer at hand in the U.S. and most of Europe on vacation, that news has been hard to come by lately," noted Jim Wyckoff in the P.M. Kitco Metals Roundup. "Several U.S. economic reports released Wednesday failed to significantly impact the precious metals."

A report from the U.S. Labor department reflected tame inflation, with consumer prices flat for a second month in July and inflation on an annual basis rising 1.4% compared to the previous 12-month reading of 1.7%. Ironically, gold has traditionally been purchased as a hedge against advancing inflation, with its luster dimmed when inflation retreats. Instead, support for the yellow metal on Wednesday was seen by some analysts as tied to the muted inflation data because it offers more maneuvering room for the Fed.

"The CPI numbers have removed one roadblock in the path of some announcement on the easing front," David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview that was relayed on Bloomberg.

In other New York bullion prices:

  • Silver prices for September delivery closed at $27.812 an ounce, rising 4.9 cents or 0.2%. It ranged from $27.430 to $27.960.

  • Platinum for October delivery shed $2.90, or 0.2%, to $1,396.20 an ounce, trading between $1,391.10 and $1,406.40.

  • Palladium for September delivery dipped 35.0 cents, or 0.1%, to $578.05 an ounce, moving between $573.00 and $581.00.

London Precious Metals

Bullion prices in London were mixed with narrow movements. When comparing London PM Fix prices:

  • Gold added $4.00, or 0.3%, to $1,601.75 an ounce,
  • Silver fell 20.0 cents, or 0.7%, to $27.64 an ounce,
  • Platinum was unchanged at $1,400.00 an ounce, and
  • Palladium declined $1.00, or 0.2%, to $576.00 an ounce

Sales of U.S. Mint Bullion Coins

Sales of U.S. Mint bullion coins on Wednesday were unchanged for a second consecutive day. The latest daily, August and year-to-date sales for U.S. Mint bullion products follow.

Sales US Mint American Eagle and Buffalo Bullion Coins
  Daily Gains August Gains YTD 2012
$50 American Gold Eagle Coins 0 8,500 322,000
$25 American Gold Eagle Coins 0 0 56,000
$10 American Gold Eagle Coins 0 0 54,000
$5 American Gold Eagle Coins 0 5,000 195,000
$50 American Buffalo Gold Coins 0 3,500 82,500
American Silver Eagle Coins 0 1,390,000 21,060,000


Sales of America the Beautiful 5 Oz. Silver Bullion Coins
  Daily Gains August Gains All-Time Total
2012 El Yunque National Forest 5 oz. Silver Coins 0 400 13,600
2012 Chaco Culture National Historical Park 5 oz. Silver Coins 0 400 7,800
2012 Acadia National Park 5 oz. Silver Coins 0 1,100 11,000
2011 Olympic National Park 5 oz. Silver Coins 0 0 85,500
2011 Vicksburg National Military Park 5 oz. Silver Coins 0 0 39,100
2011 Chickasaw Park 5 oz. Silver Coins 0 0 29,400
TOTAL 0 1,900 186,400


Above U.S. Mint bullion sales are in coin totals, not in amount of ounces sold.

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