Gold News

Gold Slips 0.5% as Stocks Rally on Geithner's "Strong Banks" Promise

From Chris Mullen at GoldSeek.com...

Gold rose to see a gain of $9.40 at $894.95 just before 09:00 New York time on Tuesday, before it slid as low as $880.10 by late morning only to bounce back in the last couple of hours of trade and end with a loss of less than 0.5% for the session.

Silver rose as high as $12.25 an ounce before it dropped down to $11.97 just before noon EST, but it also rebounded in late trade and ended with a loss of 0.7%.

The Gold Price in Euros fell to about €680, platinum lost $9.50 to $1150, and copper fell slightly to about $2.09.

Gold Mining and silver equities rose to see over 2% gains at the open, but they then fell back off for most of the rest of trade and ended with about 2% losses.

There were no major economic reports in the US on Tuesday, but Treasury Secretary Tim Geithner testified before Congress and said that the "vast majority" of US banks are well capitalized.

He also said that the Treasury does not need more bailout money and that they have about $110 billion left in their bailout fund.

Oil fell all the way to $43.83 before it rebounded and ended with a decent gain back above $46 as sentiment over the economy ebbed and flowed on Wall Street and Iran suggested that the Opec oil cartel may cut supply quotas further.

The US Dollar index fell as the Euro rose on a report showing better than expected investor confidence in Germany.

Treasury bonds finally turned lower as the Dow, Nasdaq, and S&P reversed early losses to find decent gains after banking stocks rose on Tim Geithner's comments before the Congressional Oversight Panel at midday.

There are no major US economic reports due out Wednesday.

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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