Gold News

Gold & Oil Jump as Dollar Slips; US Bond Investors Lap Up 30-Year Notes

From Chris Mullen at

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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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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