Gold & Silver Slump on Lower Oil, Rising Dollar, But Fed Warns Real Estate "Morose" Ahead of Home-Sales Data
From Chris Mullen at GoldSeek.com...
Gold and silver fell over 1% by midday in London on Wednesday before they rebounded in early New York trade. Both metals then dropped to new lows of $921.85 and $17.25 by late morning and ended near those levels with losses of 2.7% and 2.9% respectively.
The Gold Price in Euros fell 2.5% to €588 per ounce, platinum lost $45.50 to $1757.50, and copper fell a couple of cents to about $3.71.
Gold and silver equities steadily fell for most of trade and ended about 5% lower.
Oil fell once again as worries continued to ease over Tropical Storm Dolly and gasoline inventories built more than expected and evidenced the demand destruction taking place in the market.
Oil inventories fell 1.5 million barrels, gasoline inventories built 2.8 million barrels, and distillate inventories built 2.4 million barrels.
The US Dollar index rose and Treasury bonds fell while the Dow, Nasdaq, and S&P traded mostly slightly higher on relief over the continued drop in oil prices.
The Federal Reserve's Beige Book reiterated concerns over a slowing economy and rising inflation. Commercial real estate was described as "decidedly morose" by the Boston Fed bank.
Thursday at 08:30 EST brings Initial Jobless Claims for last week, expected at 380,000. At 10:00 comes the Existing Home Sales report for June, expected at 4.95 million.
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