Bullion & Business Weekend Report – July 11

Tumbling oil prices and a stronger U.S. dollar helped reduce gold’s appeal as the yellow metal, along with silver, fell for a second straight week. Platinum plunged for the fifth week.

Oil dropped below $60 a barrel, recording the biggest weekly loss in six months. The Dow, S&P 500 and major European indexes closed lower for their fourth straight week and the Nasdaq declined for the third of four weeks.

In London weekly declines, gold slid 2.1 percent, silver plunged 6.0 percent, and platinum plummeted 7.6 percent. Precious metal figures follow:

Silver closed Friday to $12.63 an ounce, falling 81 cents this week after declining 82 cents the week prior.

Gold was fixed at $913.00 an ounce, a drop of $19.50 for the week.

Platinum plunged to $1095.00 an ounce, slipping $90.00 for the week.

"Pressured by free-falling oil — itself posting the worst drop in prices since January — and by another little pop in the US dollar, the yellow metal succumbed to the perception that inflation — if it happens — is still a distant prospect," wrote Jon Nadler, senior analyst at Kitco Inc.

"With tame inflation readings and ETF and jewelry demand still slack, we maintain our bearish short-term outlook [on gold]," James More, an analyst at TheBullionDesk.com in London, was quoted Friday on Bloomberg.

Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

To follow are silver, gold and platinum performance charts, precious metal articles, oil news and week-ending world stock summaries.

London Fix Charts: Silver, Gold and Platinum
(July 3-10)

The London Fix is one of the most used bullion quotes around the world. The London AM fix for gold and platinum begins at 10:30am GMT (5:30am in New York), and the PM fix begins at 3pm GMT (10am in New York). The London Fix for silver begins each business day at 12pm GMT (7am in New York).

London Fix figures: percent and dollar changes*

Bullion articles of interest

In related news, interesting or quick-read articles this week:

• Gold falls as oil tumbles, dollar rises; copper also down – MarketWatch
  Gold futures fell Friday, extending their weekly losses to 1.6% as tumbling oil prices and a stronger dollar reduced the metal’s appeal as a hedge against inflation and a weak currency. Crude oil has lost about 10% this week…

• Gold Declines as Stronger Dollar, Lower Oil Prices Curb Demand – Bloomberg
  Gold fell as a stronger dollar and lower oil prices curbed the metal’s appeal as an alternative investment and inflation hedge. Silver also slid. Gold futures dropped 2 percent for the week, the second straight decline…

• Livin’ In A Smuggla’s Paradise… – Jon Nadler, Kitco
  Gold prices headed for a near 2% loss on the week by early this morning, as selling intensified and brought values all the way down to $905 per ounce. Pressured by free-falling oil – itself posting the worst drop in prices since January (to under $59 per barrel) – and by another little pop in the US dollar (to around $80.40 on the index), the yellow metal succumbed…

• US Mint Coin Sales Ease – CoinNews
  Collectors had more on their minds than buying coins last week, the latest US Mint figures reveal. Sales were modest, held in check by diversionary summer travel and the celebration of an extended 4th of July holiday weekend…

• Inaugural Sales of Letitia Tyler First Spouse Gold Coins – First Spouse Coins
  Letitia Tyler First Spouse Gold Coins have registered on the US Mint sales board. From their launch on Thursday, July 2, to Sunday, July 5, collectors purchased 1,853 proof and 1,020 uncirculated coins…

• Silver Coins and Set Demand Declines – Silver Coins Today
  There is little surprise in learning that last week’s US Mint silver coin sales show a general decline in demand. Collectors were, after all, off and enjoying the recent three-day holiday weekend for the 4th of July. Sales in four of the six silver Mint offerings fell compared to…

• Silver Eagles Surge Over 14 Million, Gold Eagles Slow – Coin Sales Figures
  US Mint sales of silver eagles soared over 14 million during the last seven days while gold eagles climbed, but at a slower pace than the week prior. As reported on Monday, June 29, American Eagle Gold and Silver bullion coins had the potential to close out June as the third best month in 2009…

World business, oil, gasoline, and stocks prices

Oil fell Friday “after a downbeat IEA report for 2009 and on continued market concerns over the state of the global economy,” Nimit Khamar, analyst at Sucden Financial Research, was quoted on MarketWatch.

The International Energy Agency (IEA) report projected that the global oil demand this year will fall 2.9 percent from a year ago. And with that, New York crude-oil for August delivery fell 52 cents, or 0.9 percent, to close at $59.89 a barrel, which is $7.15, or 10.7 percent, lower than last week.

The national average Saturday for unleaded gasoline was $2.549 a gallon, according to AAA. The price is 1.6 cents lower than Friday, 7.2 cents lower than a week ago, 8.3 cents down from a month back, and $1.55 lower than a year ago.

U.S. stocks ended mixed Friday, but down overall for the week as the Dow fell 1.6 percent, the S&P lost 1.9 percent, and the Nasdaq declined 2.3 percent. Friday closing figures for the three major US indexes follow:

• The Dow fell 36.65 points to close at 8,146.52.

• The S&P 500 declined 3.55 points, closing to 879.13.

• The NASDAQ gained 3.48 points to finish at 1,756.03.

And in other world markets on Friday:

• The German DAX fell 53.76 points to close at 4,576.31.

• The Paris CAC 40 declined 42.84 points to close at 2,983.10.

• And the London FTSE 100 lost 31.49 points to close at 4,127.17.

Stocks and oil prices have a lackluster day on Friday, but GM is upbeat about the future as it emerges from bankruptcy. Alison Kosik reports on these and other business news. SOUNDBITE: Bill Holsteim, Author "Why GM Matters."

Bullion and finance related collector tools

• US Mint Coin Prices
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• Silver Coins & Values
• Currency Converter
• United States Inflation Calculator