Gold News

Gold ends Weds 0.35% higher; confidence returns to stock market

From Chris Mullen at

Spot Gold Prices dipped slightly in Asia on Wednesday before finding small gains in London and further gains in New York, closing over $660 per ounce, up by 0.35%.

Silver topped $11.80 before it also pared its gains in the last couple hours of trade, but it still ended with a gain of 1.22%.

The Euro Price of Gold remained at about €487, platinum lost $6 to $1,238, palladium gained $1 to $318, and copper rose over 8 cents to about $3.29.

Gold and silver equities rose over 2% at the open and remained near their highs into the close.

There were no major economic data, but a US report showed a drop in mortgage applications compared to last week. Oil rose in early trade as it looked like a now weak Hurricane Dean may turn into the Gulf of Mexico, but prices then fell and closed lower after crude inventories built rather than an expected drop.

The US Dollar index fell despite a large drop in the Yen, as the euro rallied on ECB comments that there was no change in their stance on monetary policy, leading traders to believe that Eurozone rates will continue to rise despite recent credit problems.

US Treasury bonds fell as calls for an immediate Fed rate-cut faded and four large US banks each borrowed $500 million from the Fed's recently lowered discount rate of 5.75%. Still higher than the Fed funds rate of 5.25%, these discount-window loans were seen as largely symbolic. The banks said they would pass the extra finance onto their clients.

In the stock market, the Dow, Nasdaq, and S&P rose as relative calm reigned for a third day. Confidence returned to stocks on takeover news and rumors.

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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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