Gold News

Gold Hits New Dollar Highs, Treasuries Rise - But Not Stocks - After Fed Announcement

From Chris Mullen at

Gold continued its post-Fed rally in Asian and London trade on Wednesday, and rose to a new record high of $1295.80 a little after 09:00 in New York.

The Gold Price then fell back off into the close, but still ended at a new record closing high with a gain of 1.4%.

The US Dollar index fell and Treasury bonds rose in continued reaction to the Federal Reserve's hint of fresh T-bond buying to come, which also held the Dow, Nasdaq, and S&P slightly lower.

The Gold Price in Euros fell to about €965 per ounce.

Silver Prices climbed to a new 30-year high of $21.15 before also falling back off, but still ended with a gain of 2.0%.

Platinum gained $19 to $1627.00, and copper climbed over 8 cents to about $3.56.

Gold Mining and silver equities rose roughly 2% at the open before they fell back near unchanged around midday. Producer stocks then rallied back higher in afternoon trade and ended with about 1% gains.

Oil reversed early gains and ended lower after the US Energy Information Administration reported that crude inventories rose 1.0 million barrels last week, while gasoline inventories rose 1.6 million barrels and distillates rose 300,000 barrels on slack demand.

The FHFA House Price Index of US homes showed a 0.5% drop for July, adding to June's 1.2% month-on-month fall.

Thursday at 08:30 EST brings Initial US Jobless Claims for last week, expected at 450,000. At 10:00 comes the Existing Home Sales report for August, expected at 4,100,000 annualized, with the Leading Indicators report then forecast to rise 0.1%.

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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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