Gold News

Gold Ends Thurs 0.6% Higher as Bernanke Dents Wall Street, the Dollar and Treasury Bonds

From Chris Mullen at GoldSeek.com...

Gold Prices rose to $913.90 in Asia on Thursday before falling to $901.62 in London and then rallying higher in New York.

The Gold Market ended the day with a small 0.6% gain after Ben Bernanke spoke before the Senate Banking Committee and reiterated that the Fed "will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks."

The US Dollar index – along with the Dow, Nasdaq, and S&P stock indices – all fell as he outlined his grim economic outlook.

Bernanke also noted that "the outlook for the economy has worsened in recent months, and the downside risks to growth have increased" and that seemed to raise concerns for many on Wall Street.

Following Thursday's news that the US trade deficit wasn't as huge as expected in Dec., Friday at 13:30 GMT brings Import and Export Prices for January and the NY Empire State Index for February expected at 7.0.

At 14:00 GMT comes the Net Foreign Purchases report for December, followed by Capacity Utilization for Jan. and Industrial Production – expected to show 0.1% growth.

Back in Thursday's action, crude oil rose over $95 on refinery problems and a strong GDP reading out of Japan raised that demand expectations.

Treasury bonds fell as those economic figures came in slightly better than expected and traders worried about inflation due to recent and future rate cuts by the Fed.

Silver rose to $17.48 in Asian and early London trade and fell to $17.11 by early trade in New York before it rallied back near $17.40 by late morning. It then fell back off in afternoon trade and ended with a loss of 0.4%.

Gold and silver equities remained near unchanged in morning trade, but they then fell back off a bit in afternoon trade and ended with about 1% losses.

Platinum gained $12 to $1997 to a new record high, and copper fell roughly 4 cents to about $3.49.

The Gold Price in Euros slipped 0.6% to around €620 per ounce, some 8.7% higher for the year so far.

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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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