Gold News

Gold & Silver Rise vs. Falling Dollar, Govnt Bonds Drop on QE Concerns, Lower Demand

From Chris Mullen at

Gold rose in Asia and London on Thursday and saw an almost 1% gain coming into New York before it fell back to almost unchanged at $910 by about 10:00 EST.

The Gold Price then rallied back higher in the last three and a half hours of trade, ending near its new session high of $918.15 with a gain of 0.8%.

The Gold Price in Euros fell to €653 however on Dollar weakness. The US Dollar index fell markedly and the British Pound rose after the Bank of England failed to expand its current Quantitative Easing program of £125 billion ($204bn).

UK gilts fell and US Treasury bonds also dropped as Washington's 30-year bond auction drew less demand than the previous sale.

The Dow, Nasdaq, and S&P traded mostly slightly higher on decent earnings reports and economic data – with Initial Jobless Claims for last week coming in much lower than expected. But worries over where the economy is heading kept gains to a minimum.

Oil rose slightly for the first time in seven sessions after decent economic data suggested that energy demand may come back.

Silver also saw decent Dollar gains in Asia and London on Thursday before it fell to see an 8 cent loss at $12.76 by midmorning in New York. Silver then rallied back higher into the close and ended near its high of $12.97 per ounce, also with a gain of 0.8%.

Platinum gained $12.50 to $1106, and copper gained nearly 8 cents to about $2.23.

Gold Mining and silver equities rose over 2% by late morning and almost 4% by early afternoon, but they then fell back off into the close and ended with less than 1% gains.

Friday at 08:30 EST brings US Import & Export Prices for June, plus the Trade Balance for May expected at -$30.0 billion.

Then comes Michigan Sentiment for July, expected at 70.3.

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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