Gold News

Gold Slips Back, Dollar Gains, S&P Restates US Debt's AAA Rating

From Chris Mullen at GoldSeek.com...

Gold rose slightly in Asia on Thursday, saw a modest loss in London and then rose to see a $5.75 gain at $941.15 per ounce in mid-morning New York trade.

The Gold Price then dropped back off into the close and ended near its session low of $931.70 with a loss of 0.2% for the session.

The Gold Price in Euros fell to €669 an ounce.

Silver saw nearly 1% gains in Asia, but it then slowly fell back off for most of the rest of trade and ended near its low of $14.13 with a loss of 0.56%.

Platinum remained at $1200.50, and copper rose slightly to about $2.27.

Gold Mining and silver equities fell over 1% at the open before they rallied back to see slight gains, but they then fell again for most of the rest of the day and ended with about 2% losses.

Oil rose on hopes that signs of an improving economy will help increase energy demand, and the US Dollar index found slight gains on decent economic data.

Better than expected Leading Indicators, as well as sharply better data on the Philadelphia Fed's monthly index, raised the possibility that the Federal Reserve may raise interest rates sooner than previously thought. All ears will be on the Fed’s announcement next Wednesday to try and determine what their future actions may be.

Treasuries meantime fell markedly after the US government announced it will attempt to sell a record high $104 billion worth of bonds in three auctions next week. Credit-ratings agency Standard & Poor's restated their "AAA" rating on US debt, but supply concerns drove rates up as many fear the Treasury will need to offer higher yields in order to entice buyers.

The Dow, Nasdaq, and S&P mostly rose on better then expected economic data and reassuring words from Treasury Secretary Geithner.

There are no major US economic reports due out tomorrow.

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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