Gold News

Gold Ends Thurs 0.2% Lower as Crude Oil Retreats; US Stock Market Drops 2% on Credit Woes

From Chris Mullen at

Gold Prices rose as high as $799.40 in Asia on Thursday before falling as low as $784 by midmorning in New York.

The Gold Market then rallied back higher into the close, ending with a loss of just 0.19% for the day.

Silver rose to over $14.50 in Asia before it dropped to as low as $13.90 per ounce. It then rallied to end with a loss of 0.97%.

Gold Priced in Euros fell back under €547, platinum gained $3 to $1444, palladium remained unchanged at $369, and copper fell over 10 cents to about $3.41.

Gold and silver mining equities fell over 3% in the first half hour of US trade before they rebounded with the metals to see only about 1% losses by early afternoon. But gold and silver equities then fell back off with the major stock indices in the last few hours of trade and ended with roughly 3% losses.

Crude oil fell from new record highs above $96 per barrel, but it bounced off its early lows in the US session to end with a loss of only about 1%.

The US Dollar index rebounded slightly from Wednesday's new all-time lows on the idea that the Fed may not continue to cut interest rates after this week's drop to 4.50%.

Treasury bonds rose back markedly from Wednesday’s deep losses on worries over the credit market and further banking write-downs to come. Those concerns also sent the Dow, Nasdaq, and S&P more than 2% lower.

On the economic front, Personal US Income for Sept. repeated Aug.'s growth at 0.4%, but Personal Spending dipped from 0.5% to 0.3%. The Core PCE Inflation measure rose 0.2%.

Initial jobless claims for last week came in below expectations, but the ISM confidence index also slipped, coming in below forecast and dropping from a reading of 52.0 in Sept. to 50.9 for Oct.

Friday at 12:30 GMT brings Oct.'s jobs data, with Non-farm Payrolls expected at 80,000, the Unemployment Rate at 4.7%, Hourly Earnings up 0.3%, and the Average Workweek expected at 33.8 hours. Factory Orders for Sept. then follows, forecast to show a -0.4% drop.

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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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