Gold, Silver Dip 0.4 Percent on Week, Coin Sales Strong Posted by Adam King on December 10, 2012
Gold and silver dipped 0.4 percent on the week as platinum climbed 0.2 percent and palladium gained 1.4 percent. In early trade on Monday, gold and silver both made a comeback with U.S. gold futures for February delivery up $8.40 to $1,713.80 per troy ounce. The spot price of gold gained $8.10 to $1,713.00 per troy ounce. Comex silver for March delivery gained $0.259 to $33.39 per troy ounce.
Bargain hunting has been occurring at all the significant downward moves in gold, particularly last Tuesdays drop of $25 to a one-month low. The drop has been attributed by many sources to concerns over the U.S. fiscal cliff. The bargain buying has bolstered prices at each drop point. This dynamic brought gold up $3.70, or 0.2 percent, to $1,705.50 per troy ounce to close on Friday.
Gold surveys for the coming week are still bullish but decidedly less so. A Kitco News Gold Survey found that out of 33 participants and 24 respondents, 15 see prices moving up as five see prices down and four are neutral or see a sideways market.
By way of explanation, Kitco added that some of those who are bullish say the market’s break was overdone and is due for a rebound on oversold conditions. Kitco added that others who are bullish said once the market gets past the year-end holidays, gold will return to trading on its underlying bullish fundamentals and those who see weaker prices said gold is in a short-term downtrend and that’s unlikely to change.
Bloomberg’s gold survey is the least bullish in seven weeks with 14 participants forecasting higher gold prices this week, ten bearish, and seven neutral.
American bullion coins, meanwhile, have been advancing steadily and strongly at the U.S. Mint. Bullion gold coins have totaled 30,500 ounces between the American Eagle Gold Coins and the American Buffalo Gold Coins in December so far. Bullion silver coins totaled 913,000 ounces between the American Eagle Silver Coins and the America the Beautiful 5 Ounce Silver Bullion Coins. Silver Eagles topped 33 million ounces in year-to-date sales with only two other years, 2011 and 2010, earning that marker in the coin’s 27-year history.