Gold and Silver Plunge on Week, Marking Two Month Lows

by CoinNews.net on September 25, 2020 · 0 comments

gold bars and scale weighing gold bars

Gold prices dropped 4.9% this week

Platinum prices edged higher on Friday while gold, silver and palladium declined. All the metals posted sharp weekly losses. Gold and silver ended the week at fresh, two-month lows.

Gold for December delivery gave back $10.60, or 0.6%, to settle at $1,866.30 an ounce on the Comex division of the New York Mercantile Exchange. The settlement was the lowest since July 22.

"Both [gold and silver] have succumbed to belated long liquidation and pressure generated by the strength in the general dollar index," Edward Meir, an analyst at ED&F Man Capital Markets in New York, said in a note reported by Bloomberg News.

Gold prices fell 4.9% this week following two straight weekly increases of 0.7%. They are 22.5% 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:

"Among Wall Street analysts it was nearly a three-way tie for where prices could go next week with the bullish votes taking a narrow lead. Among 16 participants, six voters, or 38%, called for gold prices to rise; the call for lower prices next week or sideways movement each received five votes or 31%.

Sentiment is only slightly clearer among retail investors. At total of 2391 votes were cast in online Main Street polls. 1,207 voters or 50% said they were bullish on gold next week. Another 822, or 34%, said they were bearish, while 362 voters, or 15%, were neutral."

Silver for December delivery shed 10.3 cents, or 0.4%, to settle at $23.093 an ounce. The settlement was silver’s lowest since July 24. Silver prices tumbled 14.9% this week after gains of 1% last week and 0.5% for the week ending Sept. 11. They are 28.9% higher on the year.

In PGM futures on Friday and for the week:

  • October platinum rose $4, or 0.5%, to end at $842 an ounce, but posted a 10.3% weekly loss.

  • Palladium for December delivery finished down $4.70, or 0.2%, to $2,222.20 an ounce, for a 6.7% decline on the week.

The two are divided on the year so far with platinum 13.9% lower and palladium 16.4% higher.

London Precious Metals Prices (LBMA)

London precious metals prices ended mixed on Friday and lower on the week. In comparing their levels from Thursday PM to Friday PM:

  • Gold declined $2.05, or 0.1%, to $1,859.70 an ounce.
  • Silver added 41 cents, or 1.9%, to $22.63 an ounce.
  • Platinum added $10, or 1.2%, to $841 an ounce.
  • Palladium declined $8, or 0.4%, to $2,204 an ounce.

In LBMA weekly results, losses reached 4.7% for gold, 16.4% for silver, 10.4% for platinum and 5% for palladium.

US Mint Bullion Sales in 2020

United States Mint bullion products registered stronger gains compared to a week ago. In week-over-week comparisons:

  • Sales of American Gold Eagles advanced 10,500 ounces after increasing by 8,000 ounces last week.

  • Sales of American Silver Eagles moved ahead 517,000 ounces after having surged 331,000 ounces last week.

  • Sales of American Buffalo gold increased 3,000 ounces after they climbed 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. Products with an asterisk (*) are no longer available.

US Mint Bullion Sales (# of coins)
Friday Last Week This Week July August September 2020 Sales
$50 American Eagle 1 Oz Gold Coin 0 7,500 9,500 107,500 104,000 18,500 557,500
$25 American Eagle 1/2 Oz Gold Coin 0 1,000 1,000 4,000 10,000 3,000 58,000
$10 American Eagle 1/4 Oz Gold Coin 0 0 2,000 10,000 20,000 4,000 88,000
$5 American Eagle 1/10 Oz Gold Coin 0 0 0 35,000 70,000 10,000 290,000
$50 American Buffalo 1 Oz Gold Coin 0 1,000 3,000 30,000 28,000 4,500 188,500
$1 American Eagle 1 Oz Silver Coin 0 331,000 517,000 1,084,500 4,477,000 1,888,000 20,066,000
America Samoa 5 oz Silver Coin* 0 0 0 0 0 0 45,000
Weir Farm 5 oz Silver Coin* 0 0 0 0 0 0 45,000
Salt River Bay 5 oz Silver Coin* 0 0 0 0 0 0 45,000
Marsh Billings 5 oz Silver Coin* 0 0 0 45,000 0 0 45,000
Tallgrass Prairie 5 oz Silver Coin* 0 N/A 45,000 N/A N/A 45,000 45,000
$1 American Eagle 1 Oz Platinum Coin* 0 0 0 0 0 0 56,500

 

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