Precious metals prices declined on Friday and for the week. Weekly losses for gold and silver were their first in ten weeks.
Gold for December delivery on Friday dropped $20.60, or 1.1%, to settle at $1,949.80 an ounce on the Comex division of the New York Mercantile Exchange.
"The gold market had been in a parabolic state, so when you throw a little pickup in yields along with the impasse on the stimulus bill, it was going to see a bit of a retracement," Reuters quoted David Meger, director of metals trading at High Ridge Futures. "We might have gone a little too far, too fast, and we believe the market is in need of a pause, a consolidation. And that’s exactly what we are seeing."
Gold plunged 3.9% this week following nine straight weekly gains that had lifted prices by a combined $345, or 20.5%. As recently as a week ago Thursday, Aug. 6, gold marked a record settlement of $2,069.40 an ounce. The yellow metal is now 28% higher on the year to date.
In looking ahead to next week, Kitco News offers the following forecasts via their Wall Street & Main Street surveys:
"From a total of 13 Wall Street professionals taking part in the poll, eight, or 61.5%, called for gold prices to rise; another two, or 15.4%, estimated lower prices; and the last three, or 23.1%, projected neutral price action."
"A total of 2,407 votes were cast in an online Main Street poll. Of these, 1,439, or 59.8%, looked for gold to rise the next week; another 527, or 21.9%, expected lower prices, and the other 441 voters, or 18.3%, were neutral."
Meanwhile, silver for September delivery sank $1.63, or 5.9%, to close at $26.089 an ounce. Silver futures fell 5.3% this week following their nine consecutive weekly wins that had boosted prices by a combined $10.06, or 57.6%. On Monday, silver settled at $29.261 an ounce for its best finish since Feb. 19, 2013. The precious metal is 45.6% higher on the year.
In PGM futures on Friday and for the week:
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October platinum lost $23.90, or 2.4%, to end at $959.10 an ounce, for a 1.2% weekly decline.
- Palladium for September delivery moved down $73, or 3.3%, to close at $2,143.80 an ounce, for a 1.5% weekly loss.
The two are divided on the year so far with platinum 1.9% lower and palladium 12.3% higher.
London Precious Metals Prices (LBMA)
London precious metals prices were mixed on Friday and split on the week. In comparing their levels from Thursday PM to Friday PM:
- Gold rose 50 cents, or 0.03%, to $1,944.75 an ounce.
- Silver added 45.5 cents, or 1.7%, to $26.705 an ounce.
- Platinum edged up $4, or 0.4%, to $952 an ounce.
- Palladium declined $44, or 2%, to $2,146 an ounce.
In LBMA weekly results, gold fell 4.3%, silver lost 5.7%, platinum gained 5.1% and palladium rose 0.9%.
US Mint Bullion Sales in 2020
United States Mint bullion products logged divided gains compared to a week ago with gold sales higher and silver sales lower. In week-over-week comparisons:
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Sales of American Gold Eagles jumped 41,000 ounces after increasing by 28,500 ounces last week.
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Sales of American Silver Eagles moved ahead 675,000 ounces after having increased 918,000 ounces last week.
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Sales of American Buffalo gold increased 12,000 ounces after they advanced by 6,500 ounces last week.
Below is a sales breakdown of U.S. Mint bullion products with columns listing the number of coins sold during varying periods. Products with an asterisk (*) are no longer available.
US Mint Bullion Sales (# of coins) | |||||||
---|---|---|---|---|---|---|---|
Friday | Last Week | This Week | June | July | August | 2020 Sales | |
$50 American Eagle 1 Oz Gold Coin | 3,000 | 28,500 | 41,000 | 42,500 | 107,500 | 69,500 | 504,500 |
$25 American Eagle 1/2 Oz Gold Coin | 0 | 0 | 0 | 2,000 | 4,000 | 0 | 45,000 |
$10 American Eagle 1/4 Oz Gold Coin | 0 | 0 | 0 | 2,000 | 10,000 | 0 | 64,000 |
$5 American Eagle 1/10 Oz Gold Coin | 0 | 0 | 0 | 0 | 35,000 | 0 | 210,000 |
$50 American Buffalo 1 Oz Gold Coin | 0 | 6,500 | 12,000 | 7,500 | 30,000 | 18,500 | 174,500 |
$1 American Eagle 1 Oz Silver Coin | 0 | 918,000 | 675,000 | 1,398,000 | 1,084,500 | 1,593,000 | 15,294,000 |
America Samoa 5 oz Silver Coin* | 0 | 0 | 0 | 0 | 0 | 0 | 45,000 |
Weir Farm 5 oz Silver Coin* | 0 | 0 | 0 | 0 | 0 | 0 | 45,000 |
Salt River Bay 5 oz Silver Coin* | 0 | 0 | 0 | 0 | 0 | 0 | 45,000 |
Marsh Billings 5 oz Silver Coin* | 0 | 0 | 0 | 0 | 45,000 | 0 | 45,000 |
$1 American Eagle 1 Oz Platinum Coin* | 0 | 0 | 0 | 0 | 0 | 0 | 56,500 |