Gold settled lower Friday for the first time in five sessions but still scored the biggest weekly percentage gain in almost two years.
Gold for August delivery shed $2.30, or 0.2%, to end at $1,277.60 an ounce on the Comex in New York. The precious metal in the prior session soared $32.50, or 2.6%, to reach the highest price since June 21.
For the week, gold jumped $64.90, or 5.4%. Gains were mostly attributed to weakness in the U.S. dollar with mid-week support from bullish-taken FOMC news and comments from Federal Reserve Chairman Ben Bernanke that reiterated a loose monetary policy.
"Gold, like many other assets, is ebbing and flowing in reaction to stimulus assumptions," MarketWatch quoted Jonathan Citrin, founder and executive chairman at investment firm CitrinGroup. And this week, Federal Reserve Chairman Ben Bernanke and crew "leaned once again toward loose policy."
The weekly increase was the first in four weeks and the best since October 2011. And gains could continue, according to some analysts and traders. New gold surveys were more bullish.
"In the Kitco News Gold Survey, out of 36 participants, 25 responded this week. Of those 25 participants, 12 see prices up, while seven see prices down and six see prices moving sideways or are neutral," Kitco News noted.
"Participants who see higher prices said they expect the current bounce in gold to continue… Those who see weaker prices said gold struggles when it comes close to the $1,300 area… The participants who see prices going sideways or are neutral said after this week’s strong rally, it’s possible that gold could tread water in a range…"
Bloomberg News noted that its latest survey was the most bullish in five weeks. It had 19 participants expecting gold prices to rise next week compared to 9 who were bearish and 3 who were neutral.
Gold this week knocked several percentage points off its loss for the year so far. The yellow metal is now down $398.20, or 23.8%, since the end of 2012.
Silver, Platinum and Palladium Futures
Other precious metals rallied on the week as well, logging a bit higher gains than gold with silver up 5.6%, platinum surging 6.1% and palladium jumping 6.7%. As for Friday and their end of week closings, the breakdowns are:
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Silver for September delivery declined 16.4 cents, or 0.8% to settle at $19.79 an ounce.
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After dipping 50 cents in the prior session, October platinum dipped 70 cents to settle at $1,406.90 an ounce.
- Palladium logged a fifth consecutive day of increases with September futures up $4.70, or 0.7%, to $722.90 an ounce.
Weekly increases in silver and platinum pared their year-to-date losses which now total 34.5% for silver and 8.8% for platinum. And palladium this week moved into the black for the year, up 2.8%.
London Fix Precious Metals
London precious metals split Friday but soared for the week. When comparing the Thursday PM to Friday PM London Fix prices:
- Gold declined $5.25, or 0.4%, to $1,279.75 an ounce,
- Silver fell 19 cents, or 1%, to $19.66 an ounce,
- Platinum edged up $2, or 0.1%, to $1,403 an ounce, and
- Palladium lost $7.50, or 1%, to $716 an ounce
The broad weekly gains accumulated to 5.5% for gold, 1.8% for silver, 5.7% for platinum and 7% for palladium.
US Bullion Coin Sales in July
United States Mint bullion totals advanced on two days this week. Gains on Tuesday were strong for silver coins and on Friday better for gold coins. In the weekly bullion breakdowns:
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Gold coins added a modest 11,500 ounces after soaring 24,500 ounces in the previous week. Splits were 5,500 ounces in 22-karat American Gold Eagles and 6,000 ounces in 24-karat American Gold Buffalo coins.
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Silver coins advanced a solid 856,500 ounces, which was 1,000 ounces shy of the previous weekly total. Splits were 830,500 ounces in American Silver Eagles and 26,000 ounces in America the Beautiful Five Ounce Silver Bullion Coins.
In related U.S. Mint news about silver coins, the bureau on Thursday reduced prices on nine silver products. Cuts ranged from $5 to $25.
The following are Friday, weekly, July and year-to-date bullion coin totals as published by the U.S. Mint on its website.
| American Eagle and Buffalo Bullion Coin Sales | |||||
|---|---|---|---|---|---|
| Friday Sales | Last Week | Weekly Sales | July Sales | YTD Sales | |
| $50 American Eagle Gold Bullion Coins | 3,500 | 15,000 | 5,000 | 20,000 | 564,500 |
| $25 American Eagle Gold Bullion Coins | 0 | 4,000 | 0 | 4,000 | 47,000 |
| $10 American Eagle Gold Bullion Coins | 0 | 2,000 | 2,000 | 4,000 | 90,000 |
| $5 American Eagle Gold Bullion Coins | 0 | 15,000 | 0 | 15,000 | 430,000 |
| $50 American Buffalo Gold Bullion Coins | 2,500 | 5,500 | 6,000 | 11,500 | 173,000 |
| White Mountain 5 oz. Silver Bullion Coins | 0 | 1,000 | 800 | 1,800 | 28,800 |
| Perry’s Victory 5 oz. Silver Bullion Coins | 500 | 1,000 | 2,400 | 3,400 | 17,600 |
| Great Basin 5 oz. Silver Bullion Coins | 1,500 | 4,300 | 2,000 | 6,300 | 16,200 |
| American Silver Eagle Bullion Coins | 8,500 | 826,000 | 830,500 | 1,656,500 | 26,700,000 |
Figures above are in the number of coins sold, not in ounces.
US Silver Coin Melt Values in July and 2013
Melt values of silver coins have plummeted this year along with silver, though they are up so far in July. The following table offers melt values of older circulating US coins. These coins, at least those that have little to no numismatic worth because they are common in dates or too worn, are the ones often sought for their silver values.
| US Silver Coins | Silver Coin Melt Values (12/31/2012) | Silver Coin Melt Values (6/28/2013) | Silver Coin Melt Values (7/12/2013) | Net Change in July | Net Change Year-To-Date |
|---|---|---|---|---|---|
| 1942-1945 Jefferson Nickels | $1.68 | $1.06 | $1.11 | $0.05 | -$0.58 |
| 1892-1916 Barber Dimes | $2.17 | $1.36 | $1.42 | $0.06 | -$0.74 |
| 1916-1945 Mercury Dimes | $2.17 | $1.36 | $1.42 | $0.06 | -$0.74 |
| 1946-1964 Roosevelt Dimes | $2.17 | $1.36 | $1.42 | $0.06 | -$0.74 |
| 1892-1916 Barber Quarters | $5.42 | $3.41 | $3.56 | $0.14 | -$1.86 |
| 1916-1930 Standing Liberty 25c | $5.42 | $3.41 | $3.56 | $0.14 | -$1.86 |
| 1932-1964 Washington Quarters | $5.42 | $3.41 | $3.56 | $0.14 | -$1.86 |
| 1892-1915 Barber Half Dollars | $10.83 | $6.82 | $7.11 | $0.29 | -$3.72 |
| 1916-1947 Walking Liberty 50c | $10.83 | $6.82 | $7.11 | $0.29 | -$3.72 |
| 1948-1963 Franklin 50c | $10.83 | $6.82 | $7.11 | $0.29 | -$3.72 |
| 1964 Kennedy Half Dollars | $10.83 | $6.82 | $7.11 | $0.29 | -$3.72 |
| 1965-1970 Kennedy Half Dollars | $4.43 | $2.79 | $2.91 | $0.12 | -$1.52 |
| 1878-1921 Morgan Dollars | $23.16 | $14.59 | $15.21 | $0.62 | -$7.96 |
| 1921-1935 Peace Dollars | $23.16 | $14.59 | $15.21 | $0.62 | -$7.96 |
| 1971-1976 Silver Eisenhower $1s | $9.47 | $5.96 | $6.21 | $0.25 | -$3.25 |
| 1986-2013 American Eagles | $29.95 | $18.86 | $19.66 | $0.80 | -$10.29 |
| 2010-2013 ATB Silver Coins | $149.75 | $94.30 | $98.30 | $4.00 | -$51.45 |
All coin melt values above are based on the London silver Fix prices at the end of 2012, June 28 and July 12. For reference, melt values of newer bullion silver coins are also provided.
I don’t think that with the way the dollar index is fluxuating that it is unreasonable to think that gold will rise to 1,350 an ounce or even 1,400.