Gold News

Gold bounces in New York as Fed Index pushes Dollar higher

from Chris Mullen of GoldSeek...

Gold traded slightly lower in Asia and London on Thursday before it rose back near unchanged in early New York trade. Spot gold prices then fell back off after 9:30am EST, dropping as low as $647.20 by the London close ahead of a small rally higher in the last hour of trade.

That took the spot gold market over $3 off its low and left it with a loss of 0.84% for the day.

Silver dropped to as low as $12.92 by early afternoon before it rebounded about 1% off its low and ended with a loss of 1.21%.

Priced in Euros gold fell to about €486 per ounce, platinum lost $2 to $1,298, palladium lost $1 to $377, and copper fell slightly to around $3.38.

Gold and silver equities fell nearly 2% in the first half hour of trade and remained near their lows for most of the morning, but they then rallied higher throughout the majority of afternoon trade on Wall Street and ended with about 0.5% gains.

In the economy, initial US jobless claims came in ahead of expectations for the week-ending June 16th at 324,000 from the previous reading of 314,000. The monthly leading indicators reports showed a gain of 0.3% for May against 0.2% forecast on Wall Street. The Philadelphia Fed's factory activity index for June jumped to 18 from 4.2 last month.

The US Dollar index rose and Treasury bonds fell on the news, pushing interest rates higher.

In the broader markets WTI crude oil initially rose near $70 per barrel on news of a strike in Nigeria, but it then fell back off and ended slightly lower as it appeared the strike has had no significant impact on production or exports.

The Dow, Nasdaq, and S&P traded mostly lower in morning trade as oil prices rose, but they then climbed back higher in afternoon trade and ended with decent gains as oil prices fell back off and economic data came in strong.

Among the big names making news in the stock market were American Greetings, H&R Block, ICE and CBOT and CME, Bear Stearns, Blackstone, Dow Jones, and Luxottica and Oakley, which is merging with Ray-Ban.

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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