Gold News

Gold breaks new 27-year highs; also leaps vs. Euros & Sterling as inflation accelerates in the US

Gold Prices continued to hit new 27-year highs during the first-half of US trade on Thursday, gaining 1.6% from lunchtime Wednesday to close the day in London at $752 per ounce.

Gold Priced in Euros also rose sharply, even as the Euro moved higher against the Dollar on the forex market.

Analysts claiming that gold and the Euro are moving together will have missed Thursday's 1% rise in gold vs. the single currency.

Indeed, the most spectacular move in gold came for British investors wanting to Buy Gold Today. They saw the metal gain more than 2.0% from Wednesday's close in London, hitting a new 17-month high just a few pence shy of £370 per ounce.

It wasn't just gold that moved sharply higher, however. The FTSE100 stock-market index in London also shot up on Thursday, adding nearly 1.4% for the session to close within a few points of a new 7-year top.

Crude oil broke back above $82 per barrel, platinum hit a new all-time high, and US stocks rose 0.6% on the S&P index after Wal-Mart raised its third-quarter earnings forecast.

Gold Prices had already risen ahead of the US open, when new data showed import prices rising 5.2% in Sept. from a year earlier – a clear and sudden symptom of the US Dollar's drop to all-time record lows last month.

Import price inflation in the year to August had stood at only 1.9%.

Added to a slight fall reported in the US trade deficit, plus a lower-than-expected jobless figure for last week, those numbers pushed 10-year US bond prices lower, forcing yields 5 points higher to 4.70%.

What next for the US Federal Reserve? Can gold really defend you against the looming inflationary melt-up? To get the facts – not the hype – plus a free gram of gold stored on your behalf in Zurich, Switzerland right now, visit BullionVault here...

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.

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.

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