Gold Up for 4th Day as Silver Eagle Bullion Coins Top 30 Million Posted by Adam King on November 09, 2012
Gold gained for a fifth straight session in early Friday trading, working against gains in the U.S. dollar that brought the greenback to a two-month high. Sales of U.S. Mint bullion coins are sharply higher.
U.S. gold futures for December delivery gained $5.10 to $1,731.10 per troy ounce and the spot price of gold drifted $1.40 to $1,731.25. Silver futures for December delivery drifted $0.065 to $32.175 per troy ounce.
Analysts see gains being made on safe-haven demand for gold generated by concerns over the European sovereign debt crisis and the fiscal cliff scenario overtaking a gridlocked Washington.
Jim Wyckoff with Kitco said some fresh safe-haven demand is surfacing this week amid concerns about the approaching U.S. fiscal cliff and about the European Union sovereign debt crisis. He added the gold market also saw technical chart consolidation on Thursday following active price movements earlier this week.
Meanwhile, amid the renewed safe-haven demand, orders surged on Thursday for American bullion coins. U.S. Mint distributors snapped up 16,000 ounces of gold coins and 173,500 ounces of silver coins.
In the first eight days of November alone the sales of American Eagle Gold Coins have reached more than half the amount sold in October. As of Thursday, American Eagle Silver Coins topped 30 million for the year for only the second time in the coin’s 27-year history.
The sales levels for U.S. Mint bullion coins were nearly unchanged until Wednesday, except for the American Eagle Silver Coin, which gained 50,000. ON Monday, the bullion coins gained by 800,000, more than each of the past four weekly totals.
The one-ounce American Eagle Gold Coin gained 11,500 on November 8, bringing November’s sales to 30,000 and year to date sales to 494,500. American Eagle Silver coins gained 148,000 ounces to 1,198,000 for the month and 30,148,000 for the year to date.
The second term of President Barack Obama is seen as underlying current markets, but is a signal about the effect of the monetary policy in the U.S. With Obama’s administration continuing for another two years, the factors that brought gold and silver to their current levels will continue.
As such, the increased orders for American Eagle Gold Coins and the 30 million ounce mark for American Silver Eagle Coins are important in their reflection of market dynamics.