Gold News

Gold Hits New High on Fed Rate-Cut; US Stocks Fall as Dollar Plummets

From Chris Mullen at GoldSeek.com...

Gold Prices recovered an early dip to record a new intra-day high of $935.45 following the US Federal Reserve's latest interest-rate cut on Wednesday.

The US Dollar index – earlier buoyed by a surprise increase in US hiring reported for Jan. – plummeted to come within 0.3 points of a new record closing low, while Treasury bonds dropped as investors sold the safe haven vehicles for other assets.

The Dow, Nasdaq, and S&P fell slightly before the Fed meeting and gained over 1% afterwards. But they then fell back off into the close and ended with slight losses on concerns over the monoline bond insurers.

Silver dropped to $16.55 in Asia before it rose to $16.82 by late trade in London, but it then fell back off for most of trade in New York and ended with a loss of 0.24%. It next set a new 27 year intraday high of $16.87 in after hours access trade after the fed’s rate cut and is trading almost 1% higher from today’s earlier close at the time of writing.

The Gold Price in Euros slipped to about €622 per ounce ahead of the Fed's move before reaching €626 by the end of New York trade. Platinum lost $21 to $1685, palladium lost $3 to $387, and copper fell nearly 7 cents to about $3.22 before the Fed cut rates, but they also moved higher after.

Gold and silver equities remained mixed and near unchanged before the Fed's move and soon rose over 2% afterwards. But they then fell back off alongside the major indices in the last hour of trade, ending the US session with only about 1% gains.

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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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