Gold & Oil Jump as Dollar Slips; US Bond Investors Lap Up 30-Year Notes
From Chris Mullen at GoldSeek.com...
Gold Prices fell nearly $5 in early Asian trade Thursday but the Gold Market then rose throughout London and New York dealing to ended near its high of $885.60 with a gain of 1.24%.
Crude oil had risen to a new record intraday high of $123.93 overnight, before it fell back off in New York. The OPEC secretary general then said there is no shortage of oil in the market and prices are being driven higher by other factors like a weak Dollar.
But prices marched back higher to a new record by the close. In after-hours electronic trade oil climbed to a new peak at $124.57 per barrel.
The Dollar turned lower after both the Bank of England and European Central Bank held their interest rates steady. ECB President Trichet also warned about inflation risks, capping the Euro's 12-session slide from $1.60 t0 $1.55.
US Treasury bonds rose in price as traders reinvested a large amount of maturing bonds after a positive auction of new 30-year notes.
The Dow, Nasdaq, and S&P traded mixed, but mostly higher.
Silver fell to $16.44 and rose to $16.895 before it closed with a gain of 1.02%.
The Gold Price in Euros rose near €572 per ounce, platinum gained $56 to $2012, and copper lost over 4 cents to about $3.82.
Gold and silver equities gained over 3% by midmorning and rose to find about 4% gains by the close.
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