Gold News

Gold Up, Silver Down, as US Oil Data Boosts Risk Appetite

From Chris Mullen at

Gold fell $5.55 an ounce to $931.95 in late Asian trade in Wednesday, and remained slightly lower in London, but then spiked higher in mid-morning New York dealing and ended near its high of $944.90 with a gain of 0.6%.

The Gold Price in Euros fell to €661 an ounce.

Silver gained 12 cents to $14.05 in Asia before it fell as much as 44 cents to $13.49 by 08:30 EST in New York. Silver then rallied back higher for most of the rest of trade, but it still ended with a loss of 0.4%.

Platinum gained $11 to $1235, and copper remained at about $2.76.

Gold Mining and silver equities opened the day more than 2% lower before they climbed back higher to see over 1.5% gains at midday. Mining stocks fell back off in late trade, but they still ended with about 1% gains.

Oil opened lower on demand worries stemming from worldwide market weakness overnight, but a huge surprise drop in inventories' data raised supply concerns and sent oil back over $72 a barrel by the end of the day.

US crude inventory stockpiles fell 8.4 million barrels for the week, gasoline inventories fell 2.1 million barrels, and distillates fell 700,000 barrels.

The Dow, Nasdaq, and S&P also reversed early losses and turned higher by late morning as traders saw the large drop in energy supplies as an encouraging sign for economic growth.

The US Dollar index reversed sizeable overnight gains and ended notably lower after the risk sentiment shift.

Treasuries were able to hold on to their early risk-aversion gains, however, and ended decently higher on the day.

There were no major US economic reports. Thursday at 08:30 EST brings Initial Jobless Claims for 8/15 expected at 553,000 and at 10AM is the Leading Indicators report for July expected at 0.6% and the Philadelphia Fed survey for August expected at -2.0.

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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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