Bullion Prices and Business Weekly Update – September 4, 2010

A better-than-expected U.S. unemployment report Friday was credited for lifting stocks but pressuring gold. However, gold steadied later after data showed growth in service industries weakened in August. Although the yellow metal declined slightly for the day, it still registered a fifth straight week of gains, rising 1.1 percent.

Other precious metals moved higher both on Friday and for the week. Silver and palladium were the standouts with their respective weekly increases of 4.8 and 5.6 percent. Silver ended at its highest level since March 2008. Platinum rose 1.6 percent for the week.

U.S. stocks closed with their best week in two months, with the Dow erasing its losses for the year and the S&P 500 rallying to record its best week in eight. U.S. markets will be closed Monday for the Labor Day holiday. European stocks finished at a three-week high.

In U.S. precious metals futures prices, gold for December delivery finished at $1,251.10 an ounce, falling $2.30, or 0.2 percent, on the Comex division of the New York Mercantile Exchange. Gold gained $13.20 for the week. The metal soared 5.6 percent in August.

"Non-farm payrolls data has come out much better than expected — the consensus was for job losses of about 100,000, it has come out at 54,000," said Societe General analyst David Wilson, who was quoted on Reuters. "Gold is losing a bit of momentum." However, recent U.S. data has tended to still point toward a relatively soft recovery, he said. "There is still an overall sense of caution, which should still be supportive for gold."

Silver for September deliver closed to $19.949 an ounce, advancing 27.7 cents on Friday and surging 91 cents for the week after soaring $1.048 last week.

"Silver ETF supporters have been conspicuously absent this year relative to the significant ETF creations in the other precious metals," wrote UBS precious metals strategist Edel Tully in a note last week. "This less-speculative element to silver’s rally, and the relatively sticky nature of ETF investment, suggests that silver may now have a bit more staying power compared to previous run-ups this summer."

Platinum for October delivery closed to $1,561.10 an ounce, rising $9.60 on Friday. It climbed $24.10 for the week after rising $23.10 last week.

Palladium for September delivery advanced $6.20 to end the week at $531.45 an ounce. It surged $28.40 for the week after jumping $26.85 last week.

In London bullion weekly prices, the gold Fix was $1,240.50 an ounce, rising $5.50, or 0.4 percent, for the week.

"Despite gold’s break following the surprising U.S. unemployment report Friday, the uptrend for gold is intact, but it will likely take an unforeseen event to push it to fresh highs in the near term," notes Debbie Carlson and Allen Sykora of Kitco News.

In other weekly London precious metal prices, silver ended higher by 63 cents, or 3.3 percent, to $19.660 an ounce. Platinum was $1,553.00 an ounce, gaining $23.00, or 1.5 percent. Palladium was $524.00 an ounce, jumping $21.00, or 4.2 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

(August 27 – September 3)

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 finished lower Friday as "weak U.S. services sector data revived concerns about slowing economic growth, while a weakened Hurricane Earl posed less of a threat to refineries near its path," wrote Robert Gibbons of Reuters.

"There’s plenty of crude around and plenty of refining capacity," Adam Sieminski, chief energy economist at Deutsche Bank AG in Washington, said and was quoted on Bloomberg. "These are fundamental reasons to not be too bullish. Prices won’t rise to $125 in the next few years unless something really bad happens on the supply side."

U.S. crude oil for October delivery retreated 42 cents, or 0.6 percent, to $74.60 a barrel. Oil prices this week declined 57 cents, or 0.76 percent, after rallying $1.71, or 2.33 percent last week.

Prices at the pump rose two-tenths of a cent between Friday and Saturday. The national average for regular unleaded gasoline is $2.683 a gallon, according to the daily AAA fuel report. The price is one-tenth of a cent higher than last week, 8.2 cents lower than the price of a month back, and 9.2 cents higher than a year ago.

U.S. stocks rose "with the Standard & Poor’s 500 Index gaining a fourth day and the Dow Jones Industrial Average erasing its loss for the year, as better-than-estimated growth in private payrolls eased concern the economy is sliding back into a recession," noted Nikolaj Gammeltoft of Bloomberg.

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

• The Dow rose 127.83 points, or 1.24 percent, to 10,447.93.

• The S&P jumped 14.41 points, or 1.32 percent, to finish at 1,104.51.

• The NASDAQ ended up 33.74 points, or 1.53 percent, to 2,233.75.

For the week, the Dow advanced 2.93 percent, the S&P 500 jumped 3.75 percent, and the Nasdaq gained 3.72 percent.

And in other world markets on Friday:

• The German DAX advanced 50.77 points to 6,134.62.

• The Paris CAC 40 rose 40.77 points to end at 3,672.20.

• The London FTSE 100 gained 57.11 points to 5,428.15.

For the week, the DAX rallied 3.08 percent, the CAC 40 jumped 4.70 percent and the FTSE 100 gained 4.36 percent.

U.S. Week Ahead Business Video by Reuters

Watch out for Obama’s big economic policy drive punctuated by Friday’s highly anticipated news conference. Also on the radar is the upcoming Reuters Aerospace and Defense Summit.. 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:

• Buchanan’s Liberty First Spouse Gold Coins Issued
  The United States Mint today at noon ET placed Buchanan’s Liberty First Spouse Gold Coins on sale. The coin prices can go up or down weekly depending on the prevailing cost of gold, but the proof version opened with a price of $779 and the uncirculated option was listed for $766…

• US Mint Sales: Bullion Gold Coins Anemic
  Demand for United States Mint numismatic coins picked up for a second straight week, but interest in bullion coins was limited…

  Bullion coins have been mostly anemic between Wednesday and Monday (early September and official ending August sales are not yet available). Fractional 1/4 oz American Gold Eagles did enter the sales board for the first time in a month, rising 2,000. The 1 oz Gold Eagles advanced a modest 1,500. American Silver Eagles gained the most …