Gold News

Gold Recovers Half of Weds' $20 Drop as Oil & Equities Hit Fresh Volatility

From Chris Mullen at

Gold Prices rose slightly in Asia on Wednesday before slumping over $20 to as low as $888.95 by midday in London.

Oil started off the day lower on demand concerns, but it then rose throughout the rest of trade on supply concerns in Nigeria and ended over 1% higher above $131 after making a low of $125.96 earlier in the session.

The Gold Market rallied back higher in New York and ended over 1% off its low with a loss of just 0.82%. Silver rose to over $17.50 in Asia and dropped to $17.06 in London before it rose to a new session high of $17.63 and saw a gain of over 1% early in New York.

Silver prices then fell back off into the close and ended with a small loss of 0.34%.

The Gold Price in Euros ended little changed at about €577, platinum gained $41 to $2064, and copper fell a couple of cents to about $3.72.

Gold and silver equities fell roughly 2% at the open, but they then rallied back higher for the rest of trade and ended with about 1% gains.

The US Dollar index rose despite the resignation – apparently amicable – of Fed governor Mishkin announced today. Treasuries fell after Durable Goods Orders did not fall as much as expected and reduced recession worries.

An auction of two-year notes found buyers, however. The yield on the 10-year rose over 4.0% for the first time in 2008 and the yield on the 30-year rose to a 7-month high.

The Dow, Nasdaq, and S&P opened slightly higher as oil prices moderated and then reversed lower as oil rose back above $130, but all three indices rallied back higher in late trade and ended decently higher on apparent satisfaction with the Durable Goods Orders report.

Oil traders are now waiting for Thursday's inventory reports that were delayed from today due to the Memorial Day holiday. Tomorrow also brings Initial Jobless Claims for last week, plus first quarter GDP – expected to show 0.9% growth – and the Chain Deflator, expected at 2.6%.

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Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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