Gold, Silver Close Lower but Rise After Fed Holds QE Steady

250g Fine Gold
Gold and silver settled lower Wednesday, but rebounded in later electronic trading. US Mint gold coins advanced Wednesday.

Gold pulled back Wednesday, snapping a two-day winning streak after coming off a week in which prices jumped 4.2%.

Gold for June delivery fell $25.90, or 1.8%, to finish at $1,446.20 an ounce on the Comex in New York. The settlement price was the lowest since April 24. Prices ranged from an intraday low of $1,439.70 to a high of $1,477.40.

Gold did recover a portion of its losses in later electronic trading, after the Fed’s FOMC announcement showed no change to its quantitative easing policy. The precious metal was last at $1,457.10 an ounce, up $10.90 from the day’s close.

"Gold is still pretty pricey in the eyes of many people, and they are still smarting from the slamdown of two weeks ago," MarketWatch quoted Phil Storer, director of trading at Dillon Gage Inc., a precious-metals dealer and refiner.

"The rebound in gold was fairly aggressive" but there appeared to be a willingness on the part of more than a few bullish traders to step aside today, at least until the Fed made their announcement, he said.

Gold added 0.3% in the previous session to end April, a month in which gold dived 7.8%.

Silver also broke away from two straight days of gains. Silver for July delivery spiraled south by 84.2 cents, or 3.5%, to settle at $23.343 an ounce. Prices traded between $23.210 and $24.345. And again like gold, silver was higher in afternoon electronic trading, last at $23.645 for an increase of 30.2 cents from its settlement price.

PGMs dropped for a second consecutive day. In the daily figures:

  • July platinum declined $37.70, or 2.5%, to $1,469.50 an ounce, ranging from $1,466.60 to $1,508.90.

  • Palladium for June delivery fell $13.05, or 1.9%, to $684.75 an ounce, trading between $672.80 and $700.20.

London Fix Precious Metals

Earlier London fixed precious metals were lower as well, but losses more modest compared to bullion futures in New York. When comparing the Tuesday PM to Wednesday PM London fixings:

  • Gold shed $14.25, or 1.0%, to $1,454.75 an ounce,
  • Silver fell 45.0 cents, or 1.8%, to $23.97 an ounce,
  • Platinum lost $27.00, or 1.8%, to $1,480.00 an ounce, and
  • Palladium retreated $11.00, or 1.6%, to $688.00 an ounce

In April across the precious metals in London, losses tabbed in at 8.1% for gold, 14.7% for silver, 4.4% for platinum and 9.2% for palladium.

US Bullion Coin Sales in May

Sales advanced Wednesday for U.S. Mint gold bullion coins. 22-karat American Eagle gold coins added 10,000 ounces and 24-karat American Buffalo gold coins climbed 1,500 ounces.

The following are daily, May and year-to-date bullion coin totals as reported by the U.S. Mint.

American Eagle and Buffalo Bullion Coin Sales
  Wednesday Sales Last Week Week-To-Date May Sales YTD Sales
$50 American Eagle Gold Bullion Coins 10,000 38,000 11,000 10,000 444,000
$25 American Eagle Gold Bullion Coins 0 3,000 0 0 40,000
$10 American Eagle Gold Bullion Coins 0 4,000 0 0 72,000
$5 American Eagle Gold Bullion Coins* 0 5,000 0 0 300,000
$50 American Buffalo Gold Bullion Coins 1,500 14,500 2,500 1,500 133,500
American Eagle Silver Bullion Coins 0 845,000 855,000 0 18,310,000


*The United States Mint has temporarily suspended sales of its smallest American Gold Eagle until inventories are replenished. The Mint ran out of them on April 22.

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Coin Monger

I’m amazed that gold and silver haven’t recovered any faster than they have. It has given me the chance to buy at prices I haven’t seen in years. Funny prices are so low and the US mint can’t get enough raw material for its coins.