Gold News

Gold Closes New York at Fresh All-Time High as Dollar & Bonds Fall, Stocks Rally on Poor US Data

From Chris Mullen at GoldSeek.com...

Gold Prices continued Tuesday's fall early Wednesday, hitting $958.97 in London before the Gold Price Surged to Erase this Week's Losses in New York trade.

The Gold Market then made a new record high of $993.05 before closing with a gain of 2.51% for the session.

Silver prices also dropped at first, reaching $19.37 in London before rallying fiercely in New York and rising to a new 27-year high of $20.82 and closing with a gain of 4.56%.

The Gold Price in Euros rose back to about €645, platinum gained $20 to $2255 to a new record high, and copper gained over 16 cents to about $3.98.

On the economic front, the ADP Payroll Report showed private US businesses shedding 23,000 jobs last month vs. 119,000 growth in Jan. The Federal Reserve's Beige Book of key data noted that most major parts of the economy are weak and that economic growth has slowed since the beginning of the year.

Factory Orders shrank by 2.5% in Jan., in line with poor expectations, while the services sector continued to shrink according to the ISM report.

Thursday at 13:30 EST brings Initial Jobless Claims for last week, followed by the Pending Home Sales report for January. Most traders will likely already be looking forward to Friday's jobs data.

Crude oil rose markedly to a new record high of $104.95 per barrel as US stockpiles showed a surprising drop and the Opec oil cartel said it would keep production levels steady, rather than raising them.

Venezuela, a major producer, meantime moved troops to the Columbian border.

US crude inventories fell 3.1 million barrels last week, gasoline inventories built 1.7 million barrels, distillates fell 2.4 million barrels, and refinery utilization rose 1.2% to 85.9%.

The US Dollar index fell to yet another new record low despite the fact that interest rates rose and Treasury bonds fell. On the stock market the Dow, Nasdaq, and S&P rose in morning trade before they fell back after a bailout plan for Ambac – the huge "monoline" bond insurance firm – failed to produce a buy-out.

All three indices rallied back higher to find slight gains by the close, while gold and silver equities rose more than 4% by early afternoon in New York before they fell back off a bit.

The major Gold Mining Stock indices still ended with over 3.6% gains at new record closing highs.

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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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