Gold Slides Again, Miners Rally, as Dollar & T-Bonds Fall on Poor Debt Auction

From Chris Mullen at GoldSeek.com...

Gold extended Tuesday's after-hours losses in Asia on Wednesday, falling as low as $1125.70 a little after lunchtime in Hong Kong before it rallied back higher in London and New York.

The Gold Price rose to see a slight gain at $1146.50 by about 11:00 EST, but it then fell back off into the close and ended near its new session low of $1117.70 with a loss of 1.9%.

The Gold Price in Euros fell to €762.

Silver dropped to $17.45 in Asia before it rose to see a decent gain at $17.875 in London, but it also fell back off in late New York trade and ended with a loss of 3.2%.

Both metals rebounded in after-hours US access trade however.

Oil eventually fell on today’s bigger than expected gas and distillate inventory builds after the Energy Information Administration reported that crude inventories fell 3.8 million barrels, gasoline inventories rose 2.2 million barrels, and distillates rose 1.6 million barrels.

The US Dollar index fell on worries over immense government deficits. Treasuries fell after today’s 10-year note auction drew poor demand.

Today's bid to cover of 2.62 was worse than the recent 2.92 average and the yield of 3.448% was higher than expected.

Gold Mining and silver equities rose over 3% by midmorning before they fell back off midday and saw only slight gains at around 14:00 EST, but they then rallied back higher in the last couple of hours of trade and ended with over 2.5% gains.

Platinum lost $27 to $1400.50, and copper fell another 4 cents to about $3.10.

The Dow, Nasdaq, and S&P traded slightly lower for most of the day on continued worries over worldwide debt and another credit crisis, but stocks then rallied back higher in later trade and ended with decent gains on a renewed mood of risk taking.

Wholesale US inventories ticked higher during Oct., new data showed, as companies stopped depleting stockpiles for the first time in 18 months.

Thursday at 08:30 EST brings Initial US Jobless Claims for last week, expected at 465,000, plus the Trade Balance for October expected at minus $37.0 billion.

At 14:00 comes the Treasury Budget for November, expected at minus $134.1 billion.

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