Gold News

Gold Slips Again with US Dollar, Treasury Bonds, as Stocks Gain on Surprise Data

From Chris Mullen at GoldSeek.com...

Gold rose a couple of dollars in early London trade Tuesday before it fell as low as $911.90 after the opening of New York business.

Gold Prices then bounced back higher for the rest of the day, ending with a loss of just 0.6%.

The US Dollar index erased early gains and ended lower as traders put cash to work. Treasury bonds also fell as the Dow, Nasdaq, and S&P rose roughly 3% on optimism over the economy.

Oil climbed back near $50 on signs the economy is starting to rebound, led by a surprise jump in both US Building Permits and Housing Starts for Feb.

Producer Price Inflation for last month was weaker than analysts forecast. But excluding volatile food and fuel prices, factory gate prices rose ahead of expectations, up 0.2% month-on-month.

The Gold Price in Euros fell once again, down to €705, while Gold Mining and silver equities fell nearly 4% in the first hour of trade before they rebounded for the rest of US dealing, but still ended with almost 2% losses on the day.

Platinum lost $9 to $1043.50, and copper fell roughly two cents to about $1.72.

Silver climbed ten cents to $12.99 by late trade in Asia, but it then fell back off for most of the rest of the day and ended near its low of $12.63 with a loss of 1.7%.

Wednesday at 08:30 EST brings the fourth-quarter US Current Account Balance, expected at -$136.7 billion, followed by Consumer Price Inflation for Feb. (expected at 0.3%, with Core CPI expected at 0.1%).

Then comes the Federal Reserve's latest interest-rate decision, likely to keep rates at zero but possibly outlining the much-vaunted plan mentioned by both Fed chairman Ben Bernanke and US Treasury secretary Tim Geithner.

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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