Bullion Prices and Business Weekly Update – September 11, 2010

Markets moved narrowly for the week as concerns over a slowdown competed with mildly upbeat economic reports that gently lifted risk appetite.

Gold retreated for a third day on Friday. Prices dipped $4.60 for the week, breaking a string of five weekly increases. Other precious metals followed gold’s negative direction. Silver notably breached the $20 an ounce level before sliding lower.

Crude oil gained this week as prices on Friday rose the most since August 2. They were supported by a leak and resulting closing of a major pipeline from Canada to the U.S.

U.S. stocks rose modestly on Friday and for the week, with the major indexes edging up between 0.13 and 0.47 percent. European stocks were higher as well.

In U.S. precious metals futures prices, gold for December delivery finished Friday at $1,246.50 an ounce, falling $4.40, or 0.4 percent, on the Comex division of the New York Mercantile Exchange. Gold declined 0.4 percent for the week as well after rising 1.1 percent last week.

"The price of gold slipped on profit-taking and a lessening of risk aversion as the dollar and the euro firmed," John Stoltzfus, a senior market strategist at Ticonderoga Securities, said and was quoted on MarketWatch.

Silver for September delivery ended at $19.845 an ounce, dropping a penny on Friday. It lost 10.4 cents, or 0.5 percent, for the week after surging 91 cents, or 4.8 percent, last week.

"A significant (largest in 60 days) drop in copper (more than 2.8%) obviously impacted some of the runaway enthusiasm hitherto manifest in the silver pits,"  Jon Nadler, senior analyst at Kitco Metals, Inc. said Thursday morning following silver’s fall from $20. "At the end of the day, much as some would love to convince us of silver’s lingering monetary attributes, the white metal is largely defined by its industrial demand features."

"Thus, even is there might be room left for a run to $22-$23 in this fall fund frenzy, the wary eye must still be focusing on where (other than ETFs) real demand for the metal will actually come from — since the manifest and overriding preoccupation appears to be about economic contractions, these days," Nadler added.

Platinum for October delivery closed to $1,542.50 an ounce, falling $10.80 on Friday. It lost $18.60, or 1.2 percent, this week after gaining 1.6 percent last week.

Palladium for September delivery declined $1.95 to close at $519.85 an ounce. It lost $11.60, or 2.2 percent, on the week after soaring 5.6 percent last week.

In London bullion weekly prices, the gold Fix was $1,246.50 an ounce, rising $6.00, or 0.5 percent, for the week.

"Gold doesn’t have the fear factor to push it through new highs," Frank Lesh, a trader at FuturePath Trading in Chicago, said and was quoted on Bloomberg. "Equities have stabilized, and the European-debt crisis was worth only one day of fear, so a lot of short-term guys are coming out of the market."

In other weekly London precious metal prices, silver was $19.900 an ounce for a pick up of 24 cents, or 1.2 percent. Platinum was $1,545.00 an ounce, falling $8.00, or 0.5 percent. Palladium was $518.00 an ounce, dropping $6.00, or 1.1 percent.

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

(September 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).

August London Fix Precious Metals Prices

Business News: Oil, Gasoline, and Stocks Prices

Crude oil prices climbed Friday "supported by an upward revision to global oil demand, Chinese trade data and the temporary closure of a major (Enbridge) pipeline from the U.S. to Canada," wrote Carla Mozee and Nick Godt of MarketWatch.

"It’s all about Enbridge," Tom Bentz, a broker with BNP Paribas Commodity Futures Inc. in New York, said and was quoted on Bloomberg. "It’s a big line, which supplies a bunch of refineries in the Midwest. Depending on how long it is shut, this could put a big-sized crimp on supplies in the region."

U.S. crude oil for October delivery advanced $2.20, or 2.96 percent, to $76.45 a barrel. For the week, oil prices rose $1.85, or 2.48 percent, after falling 57 cents, or 0.76 percent last week.

Prices at the pump rose four-tenths of a cent between Friday and Saturday. The national average for regular unleaded gasoline is $2.689 a gallon, according to the daily AAA fuel report. The price is six-tenths of a cent higher than last week, 8.7 cents lower than the price of a month back, and 10.9 cents higher than a year ago.

In U.S. stocks, the "Dow and S&P 500 closed the week with their seventh gain in eight sessions in a turnaround period for stocks that has seen investors’ worst fears about the economy start to dissipate," noted Edward Krudy of Reuters.

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

• The Dow rose 47.53 points, or 0.46 percent, to 10,462.77.

• The S&P gained 5.37 points, or 0.49 percent, to finish at 1,109.55.

• The NASDAQ added 6.28 points, or 0.28 percent, to 2,242.48.

For the week, the Dow edged up 0.14 percent, the S&P 500 rose 0.46 percent, and the Nasdaq gained 0.39 percent.

And in other world markets on Friday:

• The German DAX lost 6.75 points to 6,214.77.

• The Paris CAC 40 rose 3.67 points to end at 3,725.82.

• The London FTSE 100 gained 7.48 points to 5,501.64.

For the week, the DAX advanced 1.31 percent, the CAC 40 added 1.46 percent and the FTSE 100 gained 1.35 percent.

U.S. Week Ahead Business Video by Reuters

Data out this week should show no sign of a double dip but volatility in financial markets will probably pick up. These topics and more are covered in the following Reuters "The week ahead" business video:

Bullion and Economic Articles

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

• Gold Eagle August 2010 Bullion Coin Sales Slide
  The Falling to levels not seen in two years, bullion 2010 American Gold Eagles apparently lost some favor with precious metal investors last month.

  August sales are listed at a modest 41,500 ounces, according to the most recent sales figures from the United States Mint. This is the total weight sold to the U.S. Mint’s network of authorized purchasers for all bullion Gold Eagles, including…

• Silver Eagle August 2010 Bullion Coin Sales
  The United States Mint’s most recent sales figures for bullion American Silver Eagles paints an interesting picture for the series. They show easing demand in August while still taking a giant step closer to making 2010 the best year ever for the .999 fine silver coins…