Gold futures retreated below $1,670 an ounce Thursday as strength in the U.S. dollar curbed the appeal of the precious metal, opined analysts.
"I think we can find still a pretty big correction (in gold) if the dollar regains its preeminence as the reserve currency," Reuters quoted Stanley Crouch, chief investment officer at Aegis Capital, who oversees $2 billion in client assets. "Investors are investing in gold for the perceived safety, and yet what they’re getting is incredible volatility."
Gold prices retreated $14.10, or 0.8 percent, to $1,668.50 an ounce in the December futures contract on the Comex in New York. The yellow metal ranged from an intraday low of $1,654.30 to a high of $1,686.10.
"Ultimately, given the ongoing government-debt-related crisis, safe-haven gold is still appealing to investors and buying should push the price higher over the rest of the quarter," Businessweek quoted Nikos Kavalis, an analyst at Royal Bank of Scotland Group Plc in London.
Breaking a three-day winning streak, silver prices for December delivery tumbled $1.122, or 3.4 percent, to $31.667 an ounce, trading between $31.455 and $32.800. Jim Wyckoff of Kitco Metals Inc. writes in the Thursday Kitco Roundup about silver’s near-term technicals:
"December silver futures prices closed nearer the session low Thursday. Profit taking from recent gains was seen. Silver bulls and bears are on a level near-term technical playing field.
Silver bulls’ next upside price objective is producing a close above strong technical resistance at $33.585 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $28.435.
First resistance is seen at $32.50 and then at Thursday’s high of $32.80. Next support is seen at Thursday’s low of $31.455 and then at $31.00. Wyckoff’s Market Rating: 5.0."
Platinum prices for January delivery declined $22.00, or 1.4 percent, to settle at $1,532.40 an ounce. Platinum touched an intraday low of $1,526.80 and reached a high of $1,557.40.
Palladium prices for December delivery lost $17.00, or 2.8 percent, to close at $594.10 an ounce. Palladium ranged from $588.55 to $618.00.
London Precious Metals Fixings
Earlier fixed London precious metals moved lower in unison as well. When comparing London PM fixings on Thursday to those on Wednesday, losses included:
- $26.00 for gold at $1,656.00
- 92.0 cents for silver at $31.97
- $11.00 for platinum at $1,535.00
- $8 for palladium at $604.00
U.S. Mint Bullion Coin Sales
As of 4:14 p.m. ET, advances in U.S. Mint bullion coins were limited to the one-ounce American Gold Eagle. Marking a second straight day of gains, the popular 22-karat gold coin climbed 1,500 to 25,500 for October and 785,500 for the year.
The latest daily, monthly and year-to-date U.S. Mint bullion coin sales figures follow:
| Sales of U.S. Mint American Eagle and Buffalo Bullion Coins | |||
|---|---|---|---|
| Daily Gains | October Gains | YTD 2011 | |
| Gold Eagle Coin (1 oz.) | 1,500 | 25,500 | 785,500 |
| Gold Eagle Coin (1/2 oz.) | 0 | 2,000 | 64,000 |
| Gold Eagle Coin (1/4 oz.) | 0 | 4,000 | 76,000 |
| Gold Eagle Coin (1/10 oz.) | 0 | 0 | 345,000 |
| Gold Buffalo Coin (1 oz.) | 0 | 7,500 | 140,000 |
| Silver Eagle Coin (1 oz.) | 0 | 1,880,000 | 35,291,500 |
| Sales of America the Beautiful 5 Oz. Silver Bullion Coins* | |
|---|---|
| YTD 2011 |
|
| Gettysburg National Military Park 5 oz. Silver Coin | 126,700 |
| Glacier National Park 5 oz. Silver Coin | 126,700 |
| Olympic National Park 5 oz. Silver Coin | 82,200 |
| Vicksburg National Military Park 5 oz. Silver Coin | 31,500 |
| Chickasaw Park 5 oz. Silver Coin | 21,600 |
| TOTAL | 388,700 |
*The Gettysburg and Glacier America the Beautiful Five Ounce Silver Bullion Coins are sold out. Unlike other investment-grade products, the United States Mint does not provide daily per coin sales totals for the Olympic, Vicksburg, and Chickasaw America the Beautiful Five Ounce Silver Bullion Coins. The totals are as of Wednesday, October 12.
