Gold Ends Week At Two-Month Low; Silver Prices Tumble

by CoinNews.net on June 5, 2020 · 0 comments

Gold Bars Close-up

Gold prices fell 3.9% this week

Gold, silver and platinum prices dropped Friday, padding their weekly losses. Silver ended the day at a two-week low, and snapped a four-week winning streak. Gold, meanwhile, logged a two-month low.

Gold for August delivery fell $44.40, or 2.6%, to settle at $1,683 an ounce on the Comex division of the New York Mercantile Exchange. The settlement was the weakest since April 3.

Gold and other safe havens saw pressure, opined analysts, following a report that showed U.S. jobs unexpectedly increased in May.

"We had significantly stronger-than-expected U.S. payroll numbers — an increase of 2.5 million versus an expectation of a decline of 7.5 million — that 10-million swing has brought forward expectations of the economic recovery in the United States," Reuters quoted Bart Melek, head of commodity strategies at TD Securities.

Gold was also being pressured by stronger yields and a slightly firmer dollar, "meaning the opportunity cost to hold gold in the portfolio has gone up," Melek added.

Gold futures traded 3.9% lower this week after rising 0.9% last week to score their best settlement since April 14. They are 10.5% higher on the year to date.

In looking ahead to next week, Kitco News offers the following forecasts via their Wall Street & Main Street surveys:

"Eight out of 17 Wall Street voters, or 47%, called for gold prices to weaken next week. Six voters, or 35%, predicted higher prices. Three respondents, or 18%, were neutral.

A total of 1,367 votes were cast in an online Main Street poll. Of these, 842 respondents, or 62%, looked for gold to rise in the next week. Another 282, or 21%, said lower, while 243, or 18%, were neutral."

Elsewhere, silver for July delivery sank 58.2 cents, or 3.2%, to close at $17.479 an ounce. Silver futures started the week at their highest settlement since Feb. 24. On Friday, they ended at their worst level since May 21. Silver prices tumbled this week by $1.02, or 5.5%, following four weekly gains that had lifted them by a combined $3.56 or 23.8%. Silver is 2.5% lower on the year.

In PGM futures on Friday and for the week:

  • July platinum fell $34.60, or 4%, to end at $830.40 an ounce, for a 5.1% weekly decline.

  • Palladium for September delivery gained $29.80, or 1.6%, to finish at $1,952.60 an ounce, but lost 1% on the week.

The two are divided on the year so far with platinum 15.1% lower and palladium 2.3% higher.

London Precious Metals Prices (LBMA)

London precious metals prices declined on Friday and mostly for the week. In comparing their levels from Thursday PM to Friday PM:

  • Gold fell $16.60, or 1%, to $1,683.45 an ounce.
  • Silver lost 17 cents, or 1%, to $17.58 an ounce.
  • Platinum declined $11, or 1.3%, to $823 an ounce.
  • Palladium rose $10, or 0.5%, to $1,925 an ounce.

In LBMA weekly results, prices for palladium edged up 0.3% while they fell 2.6% for gold, 0.1% for silver, and 0.2% for platinum.

US Mint Bullion Sales in 2020

United States Mint bullion sales improved over last week for American Silver Eagles but they slowed for American Eagle and Buffalo gold coins. In weekly comparisons:

  • Sales of American Gold Eagles increased by 2,500 ounces this week after rising by 3,000 ounces last week.

  • Sales of American Silver Eagles rose by 450,000 ounces this week after registering flat last week.

  • Sales of American Buffalo gold coins increased by 500 ounces this week after climbing by 1,000 ounces last week.

Below is a sales breakdown of U.S. Mint bullion products with columns listing the number of coins sold during varying periods.

US Mint Bullion Sales (# of coins)
Friday Last Week April May This Week / June 2020 Sales
$50 American Eagle 1 Oz Gold Coin 500 2,000 105,000 5,500 2,500 287,500
$25 American Eagle 1/2 Oz Gold Coin 0 1,000 0 6,000 0 39,000
$10 American Eagle 1/4 Oz Gold Coin 0 2,000 0 12,000 0 52,000
$5 American Eagle 1/10 Oz Gold Coin 0 0 0 0 0 175,000
$50 American Buffalo 1 Oz Gold Coin 500 1,000 28,500 2,500 500 119,000
$1 American Eagle 1 Oz Silver Coin 0 0 750,000 490,000 450,000 11,668,500
$1 American Eagle 1 Oz Platinum Coin 0 0 1,500 0 0 56,500

 

In terms of 5-ounce silver bullion sales for 2020, the U.S. Mint is working on getting them automated and reported. Initial U.S. Mint-provided figures have the first two 2020-dated pieces at 45,000 produced and sold per issue. These amounts are being verified.

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