Gold Adds 3.5% for the Week as Stocks Slip, Dollar Gains, "Bad Bank" Plan Put on Hold
From Chris Mullen at GoldSeek.com...
The Gold Price jumped over $15 to reach above $920 an ounce in early London trade on Friday, dipping at the New York open before hitting a new 3-month high of $929.40 in afternoon trade.
Gold Bullion ended the day near that high with an impressive gain of 2.4%, up almost 3.5% for the week.
Silver followed a similar pattern and ended near its high of $12.66 with a gain of 3.66%.
Oil rose after US economic data – showing a 3.8% contraction on an annualized basis at the close of 2008 – was not as bad as expected.
The US Dollar index also rose, while US Treasuries slipped into the close, despite the drop in equities.
The Gold Price in Euros rose to a new record high of €722, platinum gained $17.50 to $983, and copper added a penny to about $1.46.
Gold Mining and silver equities opened 2% higher before they dropped alongside the major indices, ending with 1% losses on the day.
The Dow, Nasdaq, and S&P fell roughly 2% on the day, thanks to continued economic worries and on word that the “bad bank” plan to take over toxic assets may get put on hold.
Next week's economic highlights include US Personal Income and Spending, Construction Spending, and the ISM Index on Monday, Pending Home Sales on Tuesday, ADP Employment and ISM Services on Wednesday, Initial Jobless Claims, Productivity, Unit Labor Costs, and Factory Orders on Thursday, and January’s jobs data and Consumer Credit on Friday.