Gold, Silver Close Higher but Slip After Fed News


Fine Gold, Four Bars

Precious metals futures closed higher Wednesday, with gold and silver gaining for the first time in at least three days and PGM’s rebounding from their losses on Tuesday.

Gold for December delivery added $3.80, or 0.3%, to settle at $1,349.30 an ounce on the Comex division of the New York Mercantile Exchange. Prices ranged from a low of $1,338.30 to a high of $1,359.60. The yellow metal advanced on dollar weakness but did turn lower in after-hours trading when the Federal Reserve’s Open Market Committee released its monthly monetary policy statement. Prices were last checking in at around $1,343 an ounce.

"Gold prices were trading modestly lower in afternoon dealings Wednesday, following the much-anticipated statement from the Federal Reserve’s Open Market Committee," said Jim Wyckoff, a senior analyst at Kitco Inc, in a daily note.

"As expected, the FOMC left its very accommodative U.S. monetary policy unchanged. However, many markets deemed a bit bearish the FOMC’s remark that the U.S. economy does not have as much downside risk as that seen in previous months. Traders and investors extrapolated this to suggest the Fed could start to ‘taper’ its monthly bond-buying program (QE) a bit earlier than many now reckon," Wyckoff added.

Also in regular trading, silver for December delivery gained 49 cents, or 2.2%, to finish at $22.98 an ounce. The precious metal ranged from $22.39 to $23.10. In later electronic trade, the white metal had given back about half of its earlier gain.

In PGM future prices on Wednesday:

  • January platinum rose $18, or 1.2%, to $1,479.90 an ounce, trading between $1,450.20 and $1,481.30.

  • Palladium for December added $2.45, or 0.3%, to $749.50 an ounce, ranging from $743 and $752.

London Fix Precious Metals

London precious metal fixings also advanced. In contrasting Tuesday PM to Wednesday PM London fix prices:

  • Gold edged up $5.50, or 0.4%, to $1,354.75 an ounce,
  • Silver jumped 43 cents, or 1.9%, to $22.74 an ounce,
  • Platinum tacked on $11, or 0.8%, to $1,477 an ounce, and
  • Palladium added $5, or 0.7%, to $749 an ounce

US Mint Bullion Sales in October

American Gold Eagles were alone with gains Wednesday after U.S. Mint sales advanced across all bullion product series on Tuesday. One-ounce Gold Eagles rose 1,000 ounces. In coin totals are the latest daily, October and year-to-date United States Mint bullion sales figures:

American Eagle and Buffalo Bullion Sales (# of coins)
  Wednesday Sales Last Week Week-To-Date Sales October Sales YTD Sales
$50 American Gold Eagle Bullion Coins 1,000 11,500 6,500 40,000 645,000
$25 American Gold Eagle Bullion Coins 0 2,000 0 3,000 56,000
$10 American Gold Eagle Bullion Coins 0 8,000 0 10,000 114,000
$5 American Gold Eagle Bullion Coins 0 10,000 5,000 35,000 500,000
$50 American Buffalo Gold Bullion Coins 0 2,500 3,000 18,000 218,000
White Mountain 5 oz. Silver Bullion Coins Sold Out 35,000
Perry’s Victory 5 oz. Silver Bullion Coins 0 0 0 1,200 26,200
Great Basin 5 oz. Silver Bullion Coins 0 0 0 2,200 27,200
Fort McHenry 5 oz. Silver Bullion Coins 0 0 600 3,200 28,200
American Silver Eagle Bullion Coins 0 699,000 701,000 3,087,000 39,175,000


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