Bullion Prices & Business Weekend Recap – May 22, 2010

Markets settled somewhat calmer on Friday, with stocks rising and declines in commodities tempered. However, the week as a whole was disastrous, with Europe’s debt crisis rattling financial sectors and fostering concerns over a global recovery and demand for industrial metals and oil.

Gold’s weekly decline was the largest in nearly 15 months. Palladium and palladium posted double-digit percent losses in two days that held for the week. And crude dropped Friday for a ninth day.

Although U.S. and European stocks rallied on Friday, major indexes posted weekly losses of between 3.64 percent and 5.02 percent.

In New York precious metals weekly prices, June gold declined $51.70, or 4.2 percent, to close at $1,176.100 an ounce. Gold prices broke a streak of four weekly gains.

"There is a lack of confidence in the euro zone, and people may have to shift portfolio assets to safer vehicles" such as gold, Bernard Sin, head of currency and metals trading at bullion refiner MKS Finance SA in Geneva, said on Bloomberg. "The market is very oversold. Bargain-hunters may come in and support prices."

New York silver for July delivery tumbled $1.574, or 8.2 percent, to $17.651 an ounce. July platinum plunged $214.20, or 12.5 percent, to $1,501.20 an ounce. June palladium plummeted $87.95, or 16.7 percent, to $439.95 an ounce.

"Yesterday’s [Thursday’s] price rout capped the biggest decline in twelve years in palladium and the most significant drop in platinum in over seventeen months," wrote Jon Nadler, senior analyst with Kitco Metals Inc. "Lest we think this complex was the only one sliding sharply, consider crude oil which traded at lows not seen since last September."

In London bullion weekly prices, gold was fixed to $1,179.75 an ounce, falling $56.75, or 4.6 percent.

"We maintain a positive view on gold given longer-term investor interest remains strong; however, in the near term profit taking and margin requirements given elevated speculative interest could result in a deeper correction," a MarketWatch source was quoted as telling clients in a note on Friday.

Silver dropped $1.920, or 9.8 percent to $17.720 an ounce. Platinum settled at $1,492.00, tumbling $229.00, or 13.3 percent. Palladium was $419.00, plunging $117.00, or 21.8 percent.

"You saw gold performing a lot better over the past couple days then you did PGMs and silver," said one precious metals dealer quoted on Reuters."What you have now is people, who were going to gold as a safe-haven, are kind of getting out of it and getting back into everything else," he said, pointing to strong gains in platinum, palladium and copper.

While precious metals ended with sharp weekly declines, the demand for United States Mint bullion coins soared. One-ounce American Gold Eagle and American Silver Eagle coins enjoyed their best week in May. For more, reach the short CoinNews article U.S. Mint Bullion Eagle Coins Surge, Despite Plunging Gold and Silver Prices.

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

(May 14 – 21)

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 Precious Metals Prices

World Business News: Oil, Gasoline, and Stocks Prices

Crude oil fell "for the ninth consecutive session Friday, after doubts about the pace of the economic recovery, and its impact on demand for oil, prevailed over a short-lived rebound," wrote Claudia Assis and Polya Lesova of MarketWatch.

"The worry is that the European economy is going to drag the global economy into another recession," Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, said in an interview cited on Bloomberg. "Because 2008 is so fresh in everybody’s mind, everyone I talk to is just petrified."

On Friday, New York crude oil for June delivery declined 76 cents, or 1.1 percent, to close at $70.04 a barrel. Oil prices tumbled 7.1 percent for the week after falling 4.7 percent the prior week.

Prices at the pump fell 1.5 cents between Friday and Saturday. The national average for regular unleaded gasoline is $2.812 a gallon, according to a AAA fuel report. The price is 6.5 cents lower than last week, 4.3 cents less than a month back, but 42.1 cents higher than a year ago.

U.S. stocks were lifted higher on Friday, "finding momentum at the end of a very choppy session in which concerns about global growth vied with investor willingness to scoop up shares beaten down in the recent sell-off," wrote Alexandra Twin of CNNMoney.com.

"Ultimately the underpinnings of the economy and corporate earnings are sound," David Katz, chief investment officer at Matrix Asset Advisors Inc. in New York, which manages $1.2 billion, said on Bloomberg.

"The panic and the selloff are mostly done, and we’re using days like today and yesterday to add to our equity exposure. Six months and nine months from now, you’ll be kicking yourself for not having bought more."

Friday closing figures for the three major US indexes follow:

• The Dow rose 125.38 points, or 1.25 percent, to close at 10,193.39.

• The S&P added 16.10 points, or 1.50 percent, to finish at 1,087.69.

• The NASDAQ advanced 25.03 points, or 1.14 percent, to 2,229.04.

Stocks plunged for the week, however, with the Dow falling 4.02 percent, the S&P declining 4.23 percent and the Nasdaq losing 5.02 percent.

And in other world markets:

• The German DAX ended down 38.63 points to close at 5,829.25.

• The Paris CAC 40 declined 1.78 points to end at 3,430.74.

• The London FTSE 100 fell 10.20 points to 5,062.93.

For the week, the DAX lost 3.76 percent, the CAC 40 fell 3.64 percent and the FTSE 100 ended down 3.80 percent.

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: Bullion Coins Flash Forward, May Gold Takes Title
  U.S. Mint precious metals coins are flying into buyer’s hands so fast that sales reports are outdated almost as soon as they are published.

  Despite downside pressure that has driven gold and silver prices from recent highs, the United States Mint has already sold more gold bullion coins in May than in any other month this year.

  Mint buyers have scooped up 165,500 ounces of them through May 19. One-ounce American Gold Eagles have been favored by 2-1 over the one-ounce American Gold Buffalos.

   

• Cash as Kin – Jon Nadler, Kitco Metals Inc.
  Erosion in precious metals values continued overnight as gold was headed for its largest weekly fall in 15 months. Yesterday’s price rout capped the biggest decline in twelve years in palladium and the most significant drop in platinum in over seventeen months. Lest we think this complex was the only one sliding sharply, consider crude oil which traded at lows not seen since last September.

  Or, you might examine copper which lost 4.3% this week on Chinese slowdown concerns. The country imported 8.1% less of the red metal last month vis a vis March, albeit the very latest in import tallies give reason for some optimism . Finally, also keep in mind that as of yesterday, every major equity index into correction territory (or worse). Clearly, something of a sentiment change about global economics is afoot among investors, following the weeks of Graeco-European turmoil.

  That crisis is still not close to a resolution, as a number of events intended to achieve such a goal are still on the agenda as of this writing. The Lower House of Parliament in Germany approved the $1T rescue bill after having come to the realization that there really were no other alternatives handy. Meanwhile, German business confidence fell in the wake of the recent sturm und drang. The Ifo Institute labeled the decline as ‘unexpected’ however, it was anything but…