Gold Down on Tamer Inflation, US Gold Bullion Coins Rise

Two Gold Eagle Bullion Coins
Gold ended lower Tuesday as reports noted easing inflation, though sales still advanced for U.S. Mint gold bullion coins.

Gold ended lower for the fifth time in six sessions Tuesday, pressured on news of easing U.S. inflation and as investors await Wednesday’s monetary policy statement from the Fed.

Gold for December delivery shed $8.40, or 0.6%, to settle at $1,309.40 an ounce on the Comex division of the New York Mercantile Exchange. Gold touched an intraday low of $1,305.80 and reached a high of $1,324.70. The precious metal in the previous session advanced $9.20, or 0.7%.

Dampening bullion enthusiasm, U.S. inflation edged up 0.1% in August compared to 0.2% in July, the Labor Department reported Tuesday morning in the monthly Consumer Price Index report. Inflation on a 12-month basis climbed 1.5% versus the prior 2.0% reading.

"With less-than-expected growth in CPI numbers, the appeal of gold as an inflation hedge is diminished," Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview according to Bloomberg. "Tomorrow’s extent of reduction in the stimulus will be very crucial for gold prices."

The FOMC monetary policy meeting began Tuesday morning and it is scheduled to conclude midday Wednesday. There has been talk that the Fed will begin slowing its bond-buying program.

"If the Fed turns out to be anything other than what traders have been expecting on tapering, we are going to see much higher gold prices," Reuters quoted Miguel Perez-Santalla, vice president at BullionVault.

Silver for December delivery declined 22.5 cents, or 1%, to close at $21.78 an ounce, trading between $21.64 and $22.14. Silver prices on Monday gained 28.9 cents, or 1.3%. The precious metal has fallen in four of the last five sessions.

In PGM futures on Tuesday:

  • Lower for a second day, October platinum declined $18.80, or 1.3%, to $1,422.40 an ounce. It ranged from $1,419.30 to $1,448.00.

  • Palladium edged higher, extending its winning streak to four sessions. Palladium for December added 90 cents, or 0.1%, to $706.95 an ounce, trading between $697.85 and $712.05.

London Fix Precious Metals

London precious fixings were mixed after notching gains to start the week. In contrasting their Monday PM to Tuesday PM London fix prices:

  • Gold declined $11.75, or 0.9%, to $1,312.25 an ounce,
  • Silver added 9 cents, or 0.4%, to $21.97 an ounce,
  • Platinum fell $6, or 0.4%, to $1,436 an ounce, and
  • Palladium added $4, or 0.6%, to $708 an ounce

U.S. Mint Bullion Sales in September

United States Mint gold sales climbed by 2,500 ounces, with splits of 2,000 ounces in American Gold Eagles and 500 ounces in American Buffalo gold coins. Silver sales were flat after gains on Monday totaled more than last week’s entire tally.

In coin totals (not ounces) are the latest daily, September and year-to-date U.S. Mint bullion sales figures:

American Eagle and Buffalo Bullion Sales
  Tuesday Sales Last Week Weekly Sales September Sales YTD Sales
$50 American Gold Eagle Bullion Coins 2,000 2,500 3,000 6,500 603,000
$25 American Gold Eagle Bullion Coins 0 0 1,000 2,000 50,000
$10 American Gold Eagle Bullion Coins 0 2,000 0 2,000 102,000
$5 American Gold Eagle Bullion Coins 0 10,000 0 10,000 465,000
$50 American Buffalo Gold Bullion Coins 500 4,000 1,000 5,500 195,500
White Mountain 5 oz. Silver Bullion Coins 0 3,800 0 3,800 35,000
Perry’s Victory 5 oz. Silver Bullion Coins 0 1,400 0 1,400 25,000
Great Basin 5 oz. Silver Bullion Coins 0 3,000 0 3,000 25,000
Fort McHenry 5 oz. Silver Bullion Coins 0 14,200 0 14,700 25,000
American Silver Eagle Bullion Coins 0 500,000 675,000 1,850,000 34,925,000


To see how the value of the U.S. dollar has changed over time, check out this site’s Inflation Calculator.

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