Gold and Silver Prices Down in October as U.S. Bullion Coins Firm
Posted by Adam King on November 05, 2012
Though gold and silver made gains on the last day of October, the metals had a slow month.
Total losses for October reached 3.1 percent for gold, 6.5 percent for silver, 5.5 percent for platinum, and 4.8 percent for palladium. The monthly decline in gold was the first since May and the decline in silver was the first since June.
As of early trading on Monday, the spot price of gold gained $5.70 per troy ounce to $1,683.00 with gold futures for December delivery quoted up $7.40 to $1,682.60 per troy ounce.
Following the two-day suspension of floor trading due to Superstorm Sandy, U.S. gold futures for December delivery gained $7.00, or 0.4 percent, to $1,719.10 per troy ounce on the Comex Division of the New York Mercantile Exchange. The price point was the highest in the metal since October 22.
But with the release of the U.S. jobs report on Friday, November 2, gold resumed a downward trend, breaking through the psychologically important $1,700 per troy ounce level.
As prices dropped, buying overseas picked up despite a strong dollar and sales levels for the U.S. Mint indicated sales at levels stronger that we’ve seen in many of the previous months.
American Eagle Silver Coins in October reached 3.135 million, lower than the 3.255 million sold in September but higher than the previous seven months of 2012. American Eagle Gold Coins reached 59,000 ounces for October, down from 68,500 ounces in September but still higher than five other months in 2012. The American Buffalo Gold Coin hit sales of 11,000 ounces, which is the highest monthly total for the coin since 26,000 coins were sold in March.
Lower price points are bringing in investor demand in addition to economic trends. While the U.S. election proceedings have placed wider markets on hold, many investors are not waiting for the results of the presidential election to take advantage of the relatively low price points in the gold and silver markets.
The U.S. dollar reached a two-month high against the euro, which has been dampening gold-buying in overseas markets and contributing to the downward trend of gold prices in U.S. markets. As the gold price ticks lower, however, gold-buying in markets that have waiting on the sidelines, like India, is beginning to resume, particularly with the festival season beginning.