Gold News

Gold Ends Weds 0.3% Higher as Stocks Rise on "Mark-to-Model" Hopes

From Chris Mullen at GoldSeek.com...

The Gold Price dropped in late Wednesday trade in Asia, before it rebounded in London as high as $932.65 an ounce.

Gold Prices then fell back to about unchanged in early US dealing, but gold then climbed back higher in the last two hours of trade and ended with a gain of 0.3% for the session.

The Gold Price in Euros rose back to €700 an ounce. Gold Mining and silver equities rose throughout most of trade and ended with about 5% gains.

Platinum gained $14 to $1033.50, and copper rose slightly to about $1.85. Silver fell 18 cents to $12.82 before it rose over 1%, up as high as $13.17 an ounce. Silver then fell back to under $12.90, but it also rebounded into the close to end with a loss of 0.5%.

Crude oil fell as US inventory stockpile numbers rose and more poor economic data raised worries over demand.

The US Dollar index and Treasury bonds both rose slightly, but the Dow, Nasdaq, and S&P erased early losses and ended over 1% higher on hopes the worst of the current crisis is behind us.

Thursday at 13:30 GMT brings Initial US Jobless Claims for last week, expected at 650,000, and then US Factory Orders for Feb., expected up 1.4%.

A decision about the mark-to-market rule for US accounting practices is also due out Thursday morning (Eastern Standard), with short-term traders buying stocks on expectations of a favorable ruling for indebted finance companies.

"By letting banks use internal models, instead of market prices, and allowing them to take into account the cash flow of securities, the change could boost bank industry earnings by 20%," says a former Lehman Bros. executive.

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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