Gold Marks Second Weekly Gain, Ends at Over 3-Month High

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Precious metals advanced on Friday but only gold scored a weekly win — its second in a row. The yellow metal also ended the day at a more than three-month high.

Gold for June delivery rose $14.10, or 0.8%, to settle at $1,838.10 an ounce on the Comex division of the New York Mercantile Exchange. The settlement was the strongest since Feb. 10 when gold ended at $1,842.70 an ounce.

Gold prices "held up reasonably well this week" despite a firmer U.S. dollar and a slight increase in U.S. 10-year Treasury yields, "buoyed instead by rising inflation fears," MarketWatch quoted Edward Meir, analyst at ED&F Man Capital Markets. "After all, gold is supposed to be the quintessential ‘inflation hedge’ and so if it were to do well, now is the time."

Gold futures traded 0.4% higher this week after surging 3.6% last week. They are 3% lower on the year to date.

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

"This week, 13 analysts participated in Kitco News’ gold survey. Of those, ten analysts, or 77%, said they were bullish on gold; at the same time, one analyst, or 8%, said they were bearish on prices next week. Two analysts, or 15%, said they see gold prices trading sideways.

Meanwhile, a total of 464 votes were cast in an online Main Street. Of these, 330 respondents, or 71%, looked for gold to rise next week. Another 80 respondents, or 17%, said lower, while 54 voters, or 11%, were neutral."

Elsewhere, silver for May delivery tacked on 30.6 cents, or 1.1%, to close at $27.365 an ounce. Despite the day’s solid gain, silver prices ended 0.4% lower on the week. They soared 6.2% last week. As for the year, silver is ahead 3.6%.

In PGM futures on Friday and for the week:

  • July platinum added $16.30, or 1.4%, to end at $1,222.80 an ounce, but logged a 2.5% weekly loss.

  • Palladium for June delivery finished up $30, or 1.1%, to $2,894.60 an ounce, but declined 1% on the week.

The two are higher on the year so far with gains of 13.3% for platinum and 18% for palladium.

US Mint Bullion Sales in 2021

The United States Mint has yet to report any bullion sales for May. 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 / Week / May Last Week February Sales March Sales April Sales 2021 Sales
$50 American Eagle 1 Oz Gold Coin 0 0 121,000 55,500 38,500 406,000
$25 American Eagle 1/2 Oz Gold Coin 0 0 9,000 0 0 31,000
$10 American Eagle 1/4 Oz Gold Coin 0 0 0 20,000 0 56,000
$5 American Eagle 1/10 Oz Gold Coin 0 0 0 55,000 0 150,000
$50 American Buffalo 1 Oz Gold Coin 0 0 16,000 33,500 11,000 122,000
$1 American Eagle 1 Oz Silver Coin 0 0 3,191,500 4,087,000 1,053,000 13,106,500
$100 American Eagle 1 Oz Platinum Coin 0 0 N/A 35,000 0 35,000
Tuskegee Airmen 5 oz Silver Coin 0 0 N/A N/A 50,000 50,000
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Kaiser Wilhelm

This is why Catch-22 has long been one of my favorite devices. For example, gold would seem to be a good counterbalance to inflation, since when commercial prices rise so does the value of gold. However, the inflated commercial price levels will of course require that amount more in gold value to match them, so the apparently enhanced value of gold turns out in fact not to be one in a real world relative sense.

Last edited 1 month ago by Kaiser Wilhelm
Kaiser Wilhelm

Not to mention the difficulty of figuring out the right storage pattern for the gold bricks under the mattress, one that will allow for sleep without all those protruding lumps.

Last edited 1 month ago by Kaiser Wilhelm