Gold Soars to Three-Week High, Silver Rallies 4%

US bills, gold bar and coins
Another day of dollar weakness buoyed gold to its highest price since June 21.

Gold, silver and palladium notched gains Thursday for a fourth straight session. Platinum was also higher after inching lower Wednesday.

Gold for August delivery surged $32.50, or 2.6%, to close at $1,279.90 an ounce on the Comex in New York. The settlement price was the highest since June 21 when gold closed at $1,292.00 an ounce. The yellow metal bracketed intraday prices of $1,262.10 and $1,297.20.

"Sentiment will now be to the upside, and the market will be looking for an attempt on $1,300," David Govett, head of precious metals at Marex Spectron Group in London, said today in a report according to Bloomberg News.

Commodities advanced on another day of dollar weakness following bullish-taken minutes from the last FOMC meeting and comments from Federal Reserve Chairman Ben Bernanke reiterating that interest rates would stay low until the unemployment rate dropped from its current 7.6% to 6.5%.

"If the dollar breakdown continues, it will be a sign that the market believes the chairman has again lost control over policy," MarketWatch quoted Mike O’Rourke, chief market strategist at JonesTrading. And "the asset clearly in the best position in such an environment is gold."

Silver logged the strongest improvement in major metals, up 4.1%. Silver for September delivery soared 79.1 cents to end at $19.96 an ounce, ranging from $19.43 to $20.25.

PGMs were higher as well. In their daily breakdowns:

  • After dipping 50 cents in the prior session, October platinum gained $39.50, or 2.9%, to settle at $1,407.60 an ounce. Platinum traded between $1,376.20 and $1,413.50.

  • Posting the biggest gains among precious metals on Tuesday, palladium was the weakest performer on Wednesday with its 0.6% increase. Palladium for September delivery climbed $4.40 to close at $718.20 an ounce. Prices ranged from $715.20 to $731.85.

London Fix Precious Metals

London precious metals all advanced for a second consecutive day. When comparing the Wednesday PM to Thursday PM London fixings:

  • Gold added $29, or 2.3%, to $1,285 an ounce,
  • Silver rose 48 cents, or 2.5%, to $19.85 an ounce,
  • Platinum advanced $31, or 2.3%, to $1,401 an ounce, and
  • Palladium tacked on $13.50, or 1.9%, to $723.50 an ounce

US Bullion Coin Sales in July

Sales totals for U.S. Mint bullion products were unchanged Thursday, for a second day, after robust gains on Tuesday. The following are daily, July and year-to-date bullion coin totals as published by the U.S. Mint on its website.

American Eagle and Buffalo Bullion Coin Sales
  Thursday Sales Last Week Week-To-Date Sales July Sales YTD Sales
$50 American Eagle Gold Bullion Coins 0 15,000 1,500 16,500 561,000
$25 American Eagle Gold Bullion Coins 0 4,000 0 4,000 47,000
$10 American Eagle Gold Bullion Coins 0 2,000 2,000 4,000 90,000
$5 American Eagle Gold Bullion Coins 0 15,000 0 15,000 430,000
$50 American Buffalo Gold Bullion Coins 0 5,500 3,500 9,000 170,500
White Mountain 5 oz. Silver Bullion Coins 0 1,000 800 1,800 28,800
Perry’s Victory 5 oz. Silver Bullion Coins 0 1,000 1,900 2,9000 17,100
Great Basin 5 oz. Silver Bullion Coins 0 4,300 500 4,800 14,700
American Silver Eagle Bullion Coins 0 826,000 822,000 1,648,000 26,691,500


Figures above are in the number of coins sold, not in ounces.

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Keep it up!!