Gold News

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

From Chris Mullen at

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

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum 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 he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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