Gold prices returned to negative territory Thursday, one day after ending at a one-month high and despite a Labor Department report showing US inflation increased the most in nearly a year.
Gold for June delivery fell $12.30, or 0.9%, to close at $1,293.60 an ounce on the Comex division of the New York Mercantile Exchange. The yellow metal traded from a low of $1,290.90 to a high of $1,307.30.
The Labor Department’s monthly CPI report said consumer prices advanced 0.3% in April, the largest increase since last June, and the annual US inflation rate rose 2%, the biggest gain since July. Also, the core annual inflation rate, which discounts food and energy prices, rose 1.8%, the highest mark since August. Still, the core level remains below the Fed’s 2% inflation target.
"The CPI data, although showing some strength, is still within the parameters of the Fed’s targets and suggests tapering will continue," MarketWatch quoted Peter Hug, global trading director at Kitco Metals Inc. "The inflation scare, when it manifests, will be evident in the long bond rising in yields and the ten year from a high of 3% at the beginning of the year is still struggling, currently at 2.5%, which suggests that the market continues to fear deflation more than inflation."
Gold futures in the previous session gained $11.10, or 0.9%, to settle at their highest price since April 11.
In other precious metals, silver, platinum and palladium snapped a three-session winning streak. In their breakdowns:
Silver for July delivery declined 29 cents, or 1.5%, to end at $19.48 an ounce. Silver prices ranged from $19.43 to $19.84.
July platinum turned down $15.80, or 1.1%, to $1,469.90 an ounce, trading between $1,466.60 and $1,483.70.
- Palladium for June delivery tumbled $16.70, or 2%, to $812.10 an ounce, ranging from $811.75 to $827.95.
London Fix Precious Metals
Earlier fixed London precious metals declined as well. In contrasting the London fix bullion prices from Wednesday PM to Thursday PM:
- Gold shed $6.25, or 0.5%, to $1,299 an ounce,
- Silver lost 21 cents, or 1.1%, to $19.66 an ounce,
- Platinum fell $1.50, or 0.1%, to $1,471 an ounce, and
- Palladium retreated $2, or 0.2%, to $821 an ounce
US Mint Bullion Sales
Sales totals for United States Mint bullion coins were unchanged Thursday. Below is a sales breakdown of U.S. Mint bullion products with columns listing the number of bullion coins sold last week, the week so far, last month, the month so far, and the year-to-date.
|American Eagle and Buffalo Bullion Sales (# of coins)|
|Thursday Sales||Sales Last Week||Week-To-Date Sales||April Sales||May Sales||YTD Sales|
|$100 American Platinum Eagle Bullion Coins||0||600||100||1,200||700||11,900|
|$50 American Eagle Gold Bullion Coins||0||9,500||2,000||26,000||11,500||138,000|
|$25 American Eagle Gold Bullion Coins||0||0||3,000||5,000||3,000||25,000|
|$10 American Eagle Gold Bullion Coins||0||0||6,000||20,000||6,000||68,000|
|$5 American Eagle Gold Bullion Coins||0||10,000||5,000||55,000||20,000||310,000|
|$50 American Buffalo Gold Bullion Coins||0||1,000||3,500||17,500||6,000||89,000|
|$1 American Silver Eagle Bullion Coins||0||1,151,500||918,000||3,569,500||3,262,000||20,710,000|
|Great Smoky Mountains National Park 5 Oz Silver Bullion Coins||0||3,500||0||10,600||3,500||26,500|
|Shenandoah National Park 5 Oz Silver Bullion Coins||0||15,200||2,000||N/A||17,200||17,200|
To see how inflation has changed the buying power of the US dollar over time, use the CoinNews.net Inflation Calculator.