Gold News

Gold Ends Tues 1.2% Higher as Dollar Falls on "Twin Deficits" News

From Chris Mullen at GoldSeek.com...

The Gold Price traded slightly lower in Asia on Tuesday, rising in London as high as $922.80 before paring gains at the New York opening.

The Gold Price then shot back higher in the last few hours of trade and ended at its new high of the session with a gain of 1.2%.

The Gold Price in Euros climbed less quickly to €678 as the single currency rose above $1.37 to the Dollar.

Silver also traded slightly lower in Asia and rose in London, up as high as $14.33 by the open in New York, before it dipped to end with a gain of 2.3%.

Platinum gained $10 to $1122.50, and copper remained at about $2.09.

Gold Mining and silver equities steadily climbed for most of the day and ended at or near their session highs with about 4% gains.

Oil briefly climbed to over $60 per barrel before it fell back off, but it still ended with a gain as the US Dollar index fell on news of only a small reduction in the Trade Deficit for March. Increased risk appetite also encouraged traders to put cash to work in real assets.

Treasury bonds held flat as the US government posted its first April deficit since 1983. The Dow, Nasdaq, and S&P traded mixed near unchanged as traders awaited the details (and success) of various debt offerings from the very many companies now in need of capital – including the large US banks forced to raise funds by the recent "stress tests" of their balance-sheets.

Wednesday at 13:30 BST brings US Import and Export Prices for April, Retail Sales for April (expected down 0.1%, with Sales excluding autos expected at 0.0%).

Then comes the Business Inventories report for March, expected to show a 1.1% fall.

Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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