Gold News

Gold Price Slips with Silver as Oil, Platinum Rally; Stocks Reverse Early Gains

From Chris Mullen at

Gold fell some 1% in Asia and London on Wednesday, and then dropped further in late morning New York trade to drop as low as $1221.85 an ounce.

The Gold Price bounced back higher in the last couple of hours of trade, but it still ended with a loss of 1.2% on the day.

The US Dollar index and Treasury bonds fell as oil and the Dow, Nasdaq, and S&P rose markedly for most of the morning on optimism over economic growth after a report showing growing Chinese exports.

Late-day weakness in the Euro came alongside a drop in the major US indices, reversing all of their gains in afternoon trade and closing with 0.5% losses.

The Gold Price in Euros fell to end at €1029, down 2.1% from Tuesday's latest record high.

Wednesday's auction of 10-year Treasury bonds drew a yield of 3.242% with a bid to cover ratio of 3.24.

Silver meantime fell to as low as $18.07 before it also climbed back higher in late trade, but it still ended with a loss of 1.3%.

Platinum gained $8 to $1527, and copper rose 7 cents to about $2.84.

Gold Mining and silver equities waffled near unchanged for most of the morning, but they then fell off in afternoon trade and ended with over 1% losses.

The Federal Reserve's Beige Book of economic analysis for June showed that
manufacturing picked up and retail sales grew. Housing was helped by the since-expired tax credit for homebuyers.

Commercial real estate remained weak, and Fed chairman Bernanke warned on poor labor market conditions in testimony to a House of Representatives committee.

Thursday at 08:30 ET brings Initial US Jobless Claims for last week, expected at 450,000, plus the Trade Balance for April, expected at minus $41.3 billion.

The Treasury Budget for May, announced at 14:00, is expected to show a $142.0 billion deficit.

A Treasury Dept. report sent to Congress last Friday, and revealed to Reuters, forecasts that US debt will top $13.6 trillion in 2010 and reach $19.6 trillion by 2015.

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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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