Gold News

Gold Mining Stocks Hit New Record High as Dollar & Stocks Slump on Bernanke's "Bank Failure" Warning

From Chris Mullen at

Gold Prices fell over $5 to as low as $952.97 by late trade in Asia on Thursday, but the Gold Market then rallied higher for most of the rest of trade in London and New York and set a new record intra-day high of $967.10 per ounce.

Treasuries rose and the Dow, Nasdaq, and S&P fell after Ben Bernanke, the Fed chairman, told the senate banking committee that he thought there may be some bank failures coming.

Bernanke also dismissed the idea that we are in a '70s-style
stagflation, saying he expects inflation to moderate and economic
growth to return, but the US Dollar index fell to a new record low for the
third straight session after fourth-quarter GDP came in at just 0.6%
annualized and initial jobless claims for last week outpaced analyst

Gold and silver equities rose about 2% to new record intraday highs by midmorning before they fell back off a bit as the major indices fell more than 1% by early afternoon. The XAU, HUI, and GDM then rallied to new highs in the last couple hours of trade as gold and silver added to their COMEX gains in afterhours access trade and all three indices ended at new record highs.

Oil rose about 3% to a new record high, heating oil rose to a new record high over $2.85, and natural gas rose over 4% to above $9.47 as natural gas stocks fell 151 billion cubic feet.

Continued cold weather in the US, plus a fire at a gas terminal in the UK and a new attack in Nigeria that shut down production also added to the bullish move.

Spot Gold came off slightly in the last couple hours and ended with a gain of 0.70%, while silver rose to a new 27-year intra-day high of $19.833 by early afternoon in New York and closed with a gain of 2.3%.

Platinum gained $3.50 to $2132.50, and copper gained a few cents to about $3.87.

The Gold Price in Euros fell back near €633 on continued strength in the European single currency vs. the Dollar.

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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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