Bullion Prices and Business July 2010 Review

Gold settled higher for a third day on Friday, as bargain hunters stepped in on expectations prices would ultimately rise following a 5.0 percent loss in July — the biggest monthly decline since December.

"People are trying to add to holdings of gold at a sale price," Zachary Oxman, managing director at TrendMax Futures, said and was noted on MarketWatch. "and I think you are seeing some long-term players adding to their net long holdings at a reduced price."

Gold prices picked up Friday morning after a government report showed that the U.S. economy lost momentum in the second quarter, renewing fears about the recovery. The yellow metal was also aided by a falling dollar.

The bad GDP numbers stifled U.S. stocks early, but a better-than-expected consumer confidence reading and continued positive corporate earnings reports were cited factors for what became modest changes on Friday. Stocks moved narrowly on the week as well. Despite that, the major indexes each went on to post 7 percent gains in July.

Returning to the yellow metal, U.S. gold futures prices for December delivery closed at $1,183.90 an ounce, rising $12.70 for the day but still registering a weekly decline of $3.90, or 0.33 percent.

"Gold is beginning to catch some traction," Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago, said and was quoted on Bloomberg. "The correction may have run its course and for longer-term holders, this may be a buying opportunity."

September silver added 38.6 cents, or 2.2 percent, to finish at $18.003 an ounce. Silver lost 0.5 percent this week and 3.8 percent in July.

Platinum for October delivery closed to $1,576.80 an ounce, advancing $13.40, or 0.9 percent. The metal is up this week and in July, with respective gains of 2.2 percent and 2.6 percent. September palladium rose $8.80, or 1.8 percent, to close at an even $500. The metal surged 7.1 percent this week and 12.5 percent for July.

"We can understand why palladium and the commodity complex have outperformed gold of late," wrote UBS analyst Edel Tully. "Quite simply, investors are seeking risk and for now gold’s safe haven properties have been made redundant."

In London precious metals weekly prices, the gold fix was $1,169.00 an ounce for a loss of $21.50, or 1.8 percent. It dropped $75, or 6.0 percent in July.

"There are still vocal bulls around, though just a tad fewer, and they are now happy to indicate that we might yet see $1,300 this very year," noted Jon Nadler, senior analyst at Kitco Metals, Inc. " Curiously, a lot of the $2K sloganeers have quietly slipped away; perhaps to a summer vacation spot on a remote beach."

In other weekly London metal prices, silver fell 51.0 cents, or 2.8 percent, to $17.660 an ounce. The metal declined $1.08, or 5.8 percent in July.

Platinum settled at $1,555.00 an ounce for a gain this week of $14.00, or 0.9 percent. It rose $23 or 1.5 percent in July. And palladium was $487.00 an ounce for $27 or 5.9 percent weekly advance. The metal soared $41, or 9.2 percent, in July.

To follow are silver, gold, platinum and palladium performance charts, oil news, week-ending stocks, and precious metal article summaries.

London Fix Charts: Silver, Gold, Platinum and Palladium

(July 23 – 30)

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).

July London Fix Precious Metals Prices

World Business News: Oil, Gasoline, and Stocks Prices

Crude oil prices rose Friday, "capping its biggest monthly gain since March, as rallies in commodities led by wheat and aluminum took the S&P GSCI Commodity Index to a 12- week high," noted Margot Habiby of Bloomberg.

"Positive sentiment is currently driving the value in oil. Bullish sentiment is overriding bearish fundamentals," Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Ill., was cited on MarketWatch. Ritterbusch, added: "Investors just have an increased appetite for risk."

U.S. crude oil for September delivery advanced 59 cents, or 0.8 percent to $78.95 a barrel. Prices edged 3 cents lower this week, but rallied $3.32, or 4.4 percent, higher in July.

Prices at the pump fell three-tenths of a cent between Friday and Saturday. The national average for regular unleaded gasoline is $2.738 a gallon, according to the daily AAA fuel report. The price is 1.5 cents higher than last week, 1.6 cents lower a month back, and 22.1 cents more than a year ago.

U.S. stocks were mixed with minute changes on Friday, "but Wall Street wrapped up its best month in a year after the earnings season rounded the final turn with a group of strong results that offset the impact of poor economic data," wrote Edward Krudy of Reuters.

"Even though earnings and guidance have been better than expected, there’s still skepticism in the market because jobs have been missing in action," Alec Young, an equity strategist at Standard & Poor’s, was quoted on CNNMoney.com.

Friday closing figures for the three major U.S. indexes follow:

• The Dow lost 1.22 points, or 0.01 percent, to 10,465.94.

• The S&P ended up 0.07 points to finish at 1,101.60.

• The NASDAQ added 3.01 points, or 0.13 percent, to 2,254.70.

The Dow advanced 0.40 percent this week and 7.08 percent in July. The S&P 500 lost 0.10 percent this week, but gained 6.88 percent for the month. The Nasdaq declined 0.65 percent this week, but added 6.90 percent in July.

And in other world markets on Friday:

• The German DAX rose 13.27 points to 6,147.97.

• The Paris CAC 40 declined 8.77 points to end at 3,643.14.

• The London FTSE 100 fell 55.93 points to 5,258.02.

For the week, the DAX retreated 0.30 percent, the CAC 40 edged up 1.00 percent and the FTSE 100 lost 1.03 percent.

July turned out to be the best month on Wall Street in a year despite confirmation the U.S. economic recovery slowed in the second quarter. Conway G. Gittens reports on stocks, U.S. imports, construction, oil prices and other weekly business news in this Reuters video.

Bullion and Business Articles

In related bullion, business and United States Mint news, interesting or quick-read articles from the week include:

• US Mint Sales: Sets and Gold Coins Big Gainers
  The United States Mint reported a second week of rising sales, as the 2010 Proof Set attracted buyers en masse and cheaper prices lifted gold coin products…

  Bullion 1 oz American Gold Eagles jumped 57,000 in seven days, handily leading all gold coins. A big pop? Yes. It took the first twenty-one days in July before they reached 85,000. Fractional 1/2 and 1/4 oz sizes have been stuck in the mud since the 19th, and the 1/10 oz size since the 16th. Still, consider this…

• 2010 Proof Gold Eagle Production Likely?
  A House of Representatives subcommittee hearing on Tuesday revealed better odds in minting proof and uncirculated 2010 American Silver Eagle coins. But what about 2010 proof American Gold Eagles?

  As a reminder, the 2009 versions of these numismatic coins were canceled as the United States Mint focused its resources and available coin blank or planchet supplies on producing bullion coins.

  During the hearing, U.S. Mint Director Ed Moy spoke of his support for legislation that would redirect a portion of silver planchets from legally mandated bullion coins to discretionary proof and uncirculated silver dollars…