Gold News

Gold slips at the close; foreign investors buck China's move on US bonds

From Chris Mullen at GoldSeek.com...

Spot Gold Prices remained near unchanged in Asia, fell a few Dollars near $662 in London, and then rallied back higher to find slight gains by midmorning in New York.

The Gold Market then slowly and steadily fell back off into the close and ended with a loss of 0.14% for the day.

Silver fell under $12.85 in London before it rose back over $13.00 in New York, but it then also fell back off into the close and ended with a loss of 0.31%.

The Price of Gold in Euros fell to about €482, platinum lost $6 to $1,307, palladium lost $1 to $365, and copper rose roughly 2 cents to about $3.56.

Gold and silver equities rose slightly at the open, but they soon fell back off near unchanged and remained modestly lower for the rest of the day.

Economic data showed Net Foreign Purchases of US securities rose to a new record high in May, but that was despite the fact that China had been a net seller of Treasury bonds for the second straight month as it diversifies its reserves away from the US Dollar.

Wednesday at 08:30 EST brings the US consumer price inflation data for June, expected at 0.1%, with Core CPI expected at 0.2% minus fuel and food. Housing Starts for June are expected at 1,450,000, and Building Permits for June are forecast at 1,490,000.

In the broader markets, crude oil rose above $75 in the US in early trade on concerns over supply disruptions along with forecasts of strong future demand, but it fell back off to find a small loss by the close. Traders bet that refineries recently coming back online will make for bearish data in tomorrow’s gasoline inventory report that will spread to the entire energy complex.

The US Dollar index found early gains in New York on those better-than-expected Net Foreign Purchases, but it fell back near unchanged by the close on continued worries about subprime mortgage-bond credit derivatives. Traders also looked towards testimony from Ben Bernanke, chairman of the US Fed, due before Congress over the next two days.

Treasury bonds fell after decent economic data sent interest rates back higher in the market. The Dow and Nasdaq rose while the S&P ended marginally lower on mixed earning reports.

Among the big names in the news today were Wells Fargo, Sallie Mae, Basell and Lyondell, News Corp and Dow Jones, Merrill Lynch, Coca-Cola, and J&J. In the gold mining sector, Lundin bid for Rio Narcea, Cardero completed a new property purchase, and UC Resources reported assay results, all making headlines.

Adrian Ash is director of research at BullionVault, the physical gold and silver market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected finance publications.

See the full archive of Adrian Ash articles on GoldNews.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn

 

 

Market Fundamentals