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Gold, Silver Rebound as U.S. Bullion Coins Reach Milestones

The price of gold advanced for the first session in five on Tuesday and continued the trend with strong gains in mid-morning trade on Wednesday.

U.S. gold futures for February delivery gained $7.90, or 0.5 percent, to settle at $1,660.80 per troy ounce on Tuesday. On Wednesday, U.S. gold futures for April delivery gained $15.50, or 0.93 percent, to $1,678.20 per troy ounce. The spot price of gold gained $16.22, or 0.97, to $1,680.02 per troy ounce.

Jim Wyckoff writes in the PM Kitco Metals Roundup that some downbeat U.S. economic data Tuesday pressured the U.S. dollar index and in turn helped to support the metals markets. He added that U.S. consumer confidence declined by more than expected in January while home prices declined slightly in November, adding interest to the prices in precious metals this morning.

Wyckoff also notes the U.S. economic data pace picks up starting Wednesday as the U.S. Federal Reserve’s FOMC meeting and interest rate announcement occurs on Wednesday along with the fourth-quarter advance gross domestic product estimate.

The data regarding the U.S. GDP was released by the Commerce Department and indicated the economy shrank at the rate of 0.1 percent annualized during the fourth quarter of 2012. Reaction to the figures was strong as the price of gold gained both Tuesday afternoon and Wednesday morning.

Sales of U.S. bullion coins advanced sharply with three new important milestones being hit.

On January 17, 2013, the U.S. Mint suspended sales of the 2013 American Eagle Silver Coins in order to rebuild its inventories following record demand that depleted the Mint’s reserves. Sales resumed on Tuesday on an allocation basis with authorized dealers ordering 1,413,000 ounces. That sales level has brought the January 2013 sales levels to 7.42 millions coins, now an all-time monthly sales record for the entire series, which debuted in 1986.

The American Eagle Gold Coin gained 8,000 ounces to 140,000 ounces for the month of January, spurring it forward to being the strongest month for sales since the 152,000 ounces ordered in July 2010.

Additionally, American Buffalo Gold Coin sales gained 5,000 ounces to 72,000 ounces for the month of January 2013. This is the highest monthly sales total for the series since 116,500 ounces were ordered in October 2009.

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