U.S. gold futures edged modestly lower Tuesday, snapping a string of five straight record days and ten consecutive session rallies. Profit-taking and a bipartisan Senate plan to cut $3.7 trillion in U.S. debt were factors cited in weakening gold’s safe-haven demand.
"This is a market that, on a short-term basis, is extremely overbought," Matthew Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview that was cited on Bloomberg. "There are a lot of people chasing gold, but I’d be a bit leery buying at this level just because of the amount of ground it’s covered in such a short time."
August gold prices edged down $1.30, or 0.1 percent, to $1,601.10 an ounce on the Comex in New York. Gold traded from a low of $1,597.50 to a high of $1,610.70.
Silver prices for September delivery declined 12.1 cents, or 0.3 percent, to settle at $40.221 an ounce. Silver prices ranged from $39.915 to $40.880. Jim Wyckoff of Kitco Metals Inc. wrote the following of silver in the Tuesday Kitco Metals Roundup:
"December silver futures prices closed near the session low after hitting a fresh 2.5-month high early on. The silver bulls still have the solid overall technical advantage.
Bulls’ next upside price objective is producing a close above solid technical resistance at $42.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $38.00.
First resistance is seen at today’s high of $40.90 and then at $41.50. Next support is seen at $39.50 and then at this week’s low of $39.32. Wyckoff’s Market Rating: 7.5."
Platinum prices for October delivery rose 90.0 cents, or 0.1 percent, to $1,776.30 an ounce, ranging between $1,765.00 and $1,793.80.
Palladium prices for September delivery climbed $3.70, or 0.5 percent, to close at $798.30 an ounce. The metal traded between $787.50 and $803.30.
Earlier fixed London precious metals were split as well. When comparing London bullion fixings on Tuesday (PM) from those on Monday (PM), gold added $2.00 to $1,601.00 an ounce, silver prices declined a penny at $40.32 an ounce, platinum added $8.00 to $1,773.00 an ounce, and palladium rose $6.00 at $792.00 an ounce.
United States Mint one-ounce gold bullion coins advanced Tuesday, according to the latest sales figures from the bureau. The 24-karat Gold Buffalo and the 22-karat Gold Eagle each added 2,500. The latest United States Mint bullion product sales figures follow:
| US Mint American Eagle and Buffalo Bullion Coin Sales | ||||
|---|---|---|---|---|
| Daily Gains |
June 2011 |
July 2011 |
YTD 2011 |
|
| Gold Eagle Coin (1 oz.) | 2,500 | 56,000 | 24,000 | 531,500 |
| Gold Eagle Coin (1/2 oz.) | 0 | 0 | 1,000 | 56,000 |
| Gold Eagle Coin (1/4 oz.) | 0 | 8,000 | 0 | 64,000 |
| Gold Eagle Coin (1/10 oz.) | 0 | 35,000 | 5,000 | 255,000 |
| Gold Buffalo Coin (1 oz.) | 2,500 | 5,500 | 8,500 | 88,000 |
| Silver Eagle (1 oz.) | 0 | 3.402M | 1.9695M | 24.273M |
| America the Beautiful 5 Oz. Silver Bullion Coin Sales* | |
|---|---|
| YTD 2011 |
|
| Gettysburg National Military Park 5 oz. | 126,700 |
| Glacier National Park 5 oz. | 126,700 |
| Olympic National Park 5 oz. | 80,700 |
| Vicksburg National Military Park 5 oz. | 21,800 |
*America the Beautiful (ATB) Silver bullion coin sales figures are not published by the United States Mint daily. The current year-to-date figure has an "as of date" of July 11.
