Gold prices surged to start the new trading month Monday with safe-haven demand up as U.S. stocks dived and the U.S. dollar weakened.
Gold for April delivery bounced $20.10, or 1.6%, to $1,259.90 an ounce on the Comex division of the New York Mercantile Exchange. The precious metal traded from a low of $1,240.40 to a high of $1,266.10.
"U.S. gold futures rose sharply Monday as the equity market and dollar sagged after a weak manufacturing survey from the Institute for Supply Management," Allen Sykora, a senior analyst at Kitco Inc, said in a note.
The Institute for Supply Management’s factory index decreased to 51.3 in January from a recently revised 56.5 in December. An index reading above 50 indicates expansion but the latest mark is the lowest level since May 2013 and was well below expectations.
On Friday, gold settled lower for a second straight day and logged its first weekly loss in six weeks. Despite the dip, gold prices surged 3.1% in January.
Silver tracked gold with the March contract advancing 29 cents, or 1.5%, to $19.41 an ounce. Prices ranged from $19.06 to $19.62.
In rounding out precious metals futures on Monday:
April platinum rose $10.90, or 0.8%, to $1,386.60 an ounce, trading between $1,374.60 and $1,398.40.
- Palladium for March delivery slipped 50 cents to $702.70 an ounce, ranging from $700.40 to $713.15.
London Fix Precious Metals
London bullion fixings mostly climbed, with silver being the exception. In contrasting the London fix prices from Friday PM to Monday PM:
- Gold gained $11, or 0.9%, to $1,262 an ounce,
- Silver shed 4 cents, or 0.2%, to $19.27 an ounce,
- Platinum moved $4, or 0.3%, to $1,386 an ounce, and
- Palladium added $3, or 0.4%, to $710 an ounce
US Mint Bullion Coin Sales in February
Four of the U.S. Mint’s six bullion products logged sales increases on Monday, adding to strong bullion coin gains in January. For the day, Gold Eagles rose by 2,000 ounces, Gold Buffalo coins advanced 3,000 and Silver Eagles jumped 560,500.
Below is a sales breakdown across all the bureau’s bullion products.
|American Eagle and Buffalo Bullion Sales (# of coins)|
|Week-To-Date Sales||Sales Last Week||2014 Sales to Feb. 3|
|$50 American Eagle Gold Coins||1,000||1,000||63,500|
|$25 American Eagle Gold Coins||0||0||12,000|
|$10 American Eagle Gold Coins||0||0||28,000|
|$5 American Eagle Gold Coins||10,000||10,000||170,000|
|$50 American Buffalo Gold Coins||3,000||2,000||44,500|
|American Eagle Silver Coins||560,500||741,000||5,335,500|