Gold News

Gold slips 0.4% on Weds; Dollar bounces despite slump in US goods orders

From Chris Mullen at GoldSeek.com...

Gold Prices moved higher in Asian trade Wednesday, before dipping in London and spiking nearly 1% higher to $737 at the New York open but sliding fast as the session unfolded to end with a loss of 0.41%.

Silver rose as high as $13.57 before it also fell, ending with a loss of 0.82%.

Gold Priced in Euros fell to about €515, platinum gained $12 to a new record high at $1345, palladium lost $1 to $338, and copper fell a couple of cents to about $3.63.

Gold and silver mining equities found small gains in the first half hour of trade, but they then fell off to around a 2% loss, remaining near their lows into the close.

In the broader commodity markets, crude oil matched the movement in the Gold Market, rising back above $80 in early trade on Wednesday due to increased geopolitical tensions, but it then fell back under $78 after US inventory reports came in better than expected. Oil stockpiles built 1.8 million barrels despite an expected drop, gasoline inventories built a larger than expected 600,000 barrels, and distillates built a larger than expected 1.6 million barrels.

US refinery utilization, however, fell a large 2.7% to 86.9%, and as traders looked deeper into the reports – and saw a drawdown in inventories at the key Cushing, Oklahoma plant – they began to buy and oil ended back above $80 with a gain when the session finally closed.

The US Dollar index rebounded from near-record lows despite US durable goods orders for Aug. coming in nearly 5% below the previous reading. Strength in the stock market appeared to give some short-term confidence to the currency and allowed it to bounce from a technically oversold condition.

The Dow, Nasdaq, and S&P found decent gains at the open on news that GM had resolved a strike with UAW and all three indices held their gains into the close.

Treasury bonds fell in early trade on profit-taking as stocks rose, but they erased most of their losses by the close after a very strong two-year note auction added to demand.

Thursday at 12:30 GMT brings the last revision to second-quarter US economic growth, together with initial jobless claims from last week. Ninety minutes later, expect New Home Sales data for Aug., forecast to show a 4.5% drop from July.

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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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