Gold, Silver Prices at 5-Week High, U.S. Gold Bullion Coins Surge Posted by Adam King on January 23, 2013
Tuesday’s session brought gold and silver prices to a five-week high, though prices retreated modestly following Congresses Wednesday vote on the debt ceiling.
In midday Wednesday trade, Comex gold futures for February delivery lost $6.30, or 0.37 percent, to $1,686.60 per troy ounce. The spot price of gold lost $5.81, or 0.34 percent, to $1,686.94 per troy ounce. Comex silver futures for March delivery continued to gain at a change of $0.13, or 0.41 percent, to $32.30 per troy ounce.
Closing prices yesterday saw gold at $1,693.20 per troy ounce with a session high of $1,695.90 per troy ounce, the highest price in the market since December 17. The price gain is partially attributed to a weaker U.S. dollar which has made the purchase of gold more affordable for holders of foreign currency.
Jim Wyckoff, with PM Kitco Metals Roundup, said a weaker U.S. dollar index and higher crude oil prices were bullish outside forces that provided support to the precious metals. He added the Bank of Japan announced more monetary policy stimulus measures Tuesday and the easing of monetary policy is a bullish underlying factor for the precious metals markets.
Silver managed a sixth straight session increase, settling at its highest price since December 17. March silver prices gained $0.245, 0.8 percent, to $32.177, with the white metal experiencing an intraday high at $32.365 per troy ounce.
Meanwhile, every type and size of U.S. Mint gold bullion coin advanced on Tuesday with sales gaining 31,500 troy ounces, just 1,000 ounces shy of the entire total from the previous week. The activity was bolstered by a 27,000 jump in American Buffalo gold coin, now totaling 66,500 for January, the highest since sales reached 70,500 in May 2010.
American Eagle Gold Coins gained 4,500 ounces in orders from authorized distributors of the U.S. Mint, bringing the total for January to 131,5000 ounces. This is the highest level since 136,500 ounces were ordered from the Mint in November 2012. A close second, 152,000 ounces were ordered from the Mint for the month of July in 2010.