Gold News

Gold & Silver Rise vs. Dollar, Flat vs. Euro, as ECB Extends Monetary Easing

From Chris Mullen at GoldSeek.com...

Gold and silver traded slightly higher in Asia and London on Thursday, rising in early New York trade to reach as high as $923.02 and $14.13 by 09:00 EST.

Both silver and Gold Prices then fell back to about unchanged by late morning, but they rallied into the close and gold ended with a gain of 0.6% while silver added 2.1%.

The Gold Price in Euros remained at €685, however, as the US Dollar index fell and the single currency rose after the European Central Bank (ECB) cut its interest rates to 1% and said it intends to buy Euro-denominated covered bonds.

US Treasuries fell notably after a 30-year note auction drew especially poor demand.

The Dow, Nasdaq, and S&P also fell on worries over the government’s ability to find buyers for its massive debt issuances.

Oil rose to a new six month high on continued optimism over the economy and rebounding demand. Platinum gained $14.50 to $1147.50, and copper fell a couple of cents to about $2.17.

Gold Mining and silver equities rose about 2.5% at the open, but they then fell back off with the major indices for most of the rest of trade and ended with about 1% losses.

Thursday's US data releases saw Initial Jobless Claims retreat to 601,000 for last week from 635,000. Productivity was pegged 0.8% better for the first quarter, beating 0.6% expectations. Unit Labor Costs also surged, however, leaping by 3.3% after the fourth-quarter's 5.7% inflation.

US Consumer Credit sank by $11.1 billion in March, meantime, way ahead of analyst forecasts for $4bn contraction.

Friday brings the official results of the Federal Reserve's banking "stress tests", but not before April's jobs data and the Wholesale Inventories report for March – expected down 1.0%.

Non-Farm Payrolls are expected to show 600,000 job losses, pushing the Unemployment Rate up to 8.9%.

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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