Gold News

Gold Rises 1.7% as Everything Else But Treasury Bonds Falls vs. the Dollar; 10-Year Yields Sinks to 50-Year Low

From Chris Mullen at

Gold climbed to almost $750 an ounce early Thursday, before erasing all of its gains in mid-morning New York trade only to rally back higher into the close.

Spot Gold ended near its new session high of $752.80 with a gain of 1.66% for the session.

Oil fell under $50 for the first time since May 18, 2005 on more worries over slowing demand due to the global economic contraction.

The US Dollar index and Treasuries both rose on a fresh dash for cash, pushing the yield on the 10-year note fell to its lowest in 50 years.

The Dow, Nasdaq, and S&P fell markedly at the open before reversing to find decent gains in early afternoon trade on hopes a solution could be reached to save the automakers. All three indices then fell back off to new lows by the close and ended over 5% lower as it became clear that any aid package will not be passed until at least next month.

Silver meantime rose 12 cents to $9.45 a little before 08:00 EST before it dropped to see a 5.57% loss at $8.81 an ounce. Silver then rallied but still ended with a loss of 2.25%.

The Gold Price in Euros rose to about €597, platinum lost $32 to $780.50, and copper fell a couple of cents to about $1.57.

Gold and silver equities fell roughly 6% by about an hour into trade before they rallied to find over 4% gains by early afternoon, but they then fell back off into the close along with the major indices and ended with about 2% losses.

On the data front, Initial US Jobless Claims rose to the highest since 1982, and the Philadelphia Fed's business activity index fell to a new 18-year low.

There are no major economic reports due out Friday.

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.

See the full archive of Chris Mullen articles


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