Gold Edges Up in Nov, Silver Tumbles, US Mint Coin Sales Solid
New York (Nov 29) Gold, silver and platinum finished lower this week, for the first time in three, while palladium extended its weekly winning streak to two in a row.
Aside from gold, precious metals in November moved in the same direction as they did on Friday and this week. Down for a second straight session, gold for February delivery tumbled $22, or 1.8%, to settle at $1,175.50 an ounce on the Comex division of the New York Mercantile Exchange. Losses were largely attributed to a stronger U.S. dollar and weakened oil prices.
"Precious metals declined as lower oil prices prompted concerns about deflation," Reuters quoted ANZ analyst Victor Thianpiriya.
"There was a selloff in crude oil and the dollar rallied, and there’s a question of disinflation here," Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview according to Bloomberg News. "One of the motives to buy gold is to hedge against inflationary pressure, and we’ve got the opposite."
Gold prices dropped 1.9% on the week, edged up 0.3% in November and are off on the year to date by 2.2%.