Gold News

Gold & Silver Recover US Losses After-Hours; Wall Street Stocks Fall on Housing, Jobless & Poor Earnings Data

From Chris Mullen at GoldSeek.com...

Gold rose to $931.20 in early London trade on Thursday before it fell to $916.00 by late morning in New York.

Gold then rallied back higher into the close and ended with a loss of just 0.13%. Silver climbed to $17.61 and dropped to $17.075 before it also rallied back higher into the close and ended with a loss of 1.38%.

Both metals then rose further in after-hours access trade to roughly erase those losses.

The Gold Price in Euros rose to about €589, platinum lost $45.50 $1712, and copper fell 4 cents to about $3.67.

Gold and silver equities fell about 2% by late morning before they rallied back near unchanged in early afternoon action, but they then fell back off a bit into the close and ended over 1% lower.

On the data front, initial US jobless claims rose sharply in the week-ending 19th July, coming in above 409,000 compared with 380,000 forecast.

Existing home sales sank to 4.86 million (on an annualized basis) in June, down from 4.99m in May.

Securities and Exchange Commission (SEC) chairman Christopher Cox meantime asked the House Financial Services Committee for “authority to regulate investment bank holding companies and to provide explicit instructions on how to handle – and fund – financial difficulties at Wall Street firms.”

Also speaking Thursday was Federal Reserve Bank of New York president Timothy Geithner, who said that the Fed “should play an important role in the consolidated supervision of those institutions that have access to central- bank liquidity and play a critical role in market functioning.”

Friday at 13:30 GMT brings the Durable Goods Orders report for June, expected at -0.3%. At 15:00 comes New Home Sales data for June (expected at 505,000 annualized) and Michigan Sentiment for July expected at 56.4.

Back in Thursday's action, crude oil traded mostly slightly higher on fears of further disruption in Nigeria after Nigeria's main militant group – the Movement for the Emancipation of the Niger Delta, or MEND – threatened to destroy the African nation's major oil pipelines within 30 days after denying claims it has struck a $12 million deal with the government.

The US Dollar index found a slight gain as troubling Euro-zone data dragged the single currency lower and a surprise rate cut by the Reserve Bank of New Zealand gave the Dollar nice gains versus the Kiwi.

Treasuries rose as the Dow, Nasdaq, and S&P fell for most of trade and ended roughly 2% lower on poor earnings reports.

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Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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