Gold and Silver Spot Price Up, U.S. Silver Coins Surge
Posted by Adam King on November 07, 2012
Following a rebound on Monday, gold and silver began a climb from the previous week’s sessions in which the precious metals tumbled to two-month lows. The climb was accelerated following the victory of incumbent U.S. President Barack Obama.
U.S. gold futures for December delivery gained $8.00, or 0.5 percent, to $1,683.20 per troy ounce on the Comex Division of the New York Mercantile Exchange. Following the victory of Barack Obama, the price of gold in New York traded just below resistance at the $1,730.00 per troy ounce level.
The gains on Monday were attributed to short cover and bargain hunting buying interest, but the victory of Barack Obama is seen as a confirmation that extremely loose monetary policy will continue.
Last Friday’s decline in gold amounted to 2.4 percent and the lowest settlement price in the market since August 30.
The U.S. Mint released data showing advances for bullion American Eagle coins in the same time period. The one-ounce American Eagle Gold Coins gained 2,500 as American Eagle Silver Coins surged by 800,000. The single day in Silver Eagle coin sales was higher than each of the past four weekly sales totals.
November sales of American Eagle Gold Coins now stand at 18,500 for the month of November and 483,000 for the year. American Eagle Silver Coins reached the 1,000,000 million mark for November and have sold 29,948,000 for the year thus far.
Following the breach of the psychologically important $1,700 per troy ounce level in the last week of October, U.S. Mint sales began to advance at a pace not seen in previous months. The investment landscape was fairly cautious during the month of October with inconsistent daily advances amid falling precious metals prices. However, the Mint reported stronger-than-expected sales of bullion with monthly sales in October falling from levels in September but higher than levels for the same period one year ago.
The surge in gold prices, which occurred in midday trading on Tuesday, is seen as a preemptive reaction to the U.S. election with the spot price of gold surging a full $30 per troy ounce at points. Whether the price surge is sustainable on the news remains to be seen, but sales at the U.S. Mint are very strong in intermittent advances compared with historic levels.
US Gold Market