Gold News

Gold Price Drops 2.3% as T-Bonds Bounce with Dollar, Oil & Stocks Ease Back

From Chris Mullen at

The Gold Price fell together with silver throughout world trade on Friday, dropping as low as $936.70 an ounce early in New York as silver sank as far as $14.78.

Both gold and silver then rebounded slightly into the close, but the Gold Price still ended the week with a loss of 2.3% while silver closed 3.4% lower.

The Gold Price in Euros fell to a 5-week low just above €669 an ounce.

Gold Mining and silver equities fell over 3% at the open before they roughly halved their losses by midmorning, but they then fell back off into the close and ended with about 3% losses on the day, down almost 5% for the week.

Platinum lost $13 to $1250, and copper fell over 7 cents to about $2.37, while oil fell almost 1% as the US Dollar index rebounded from Thursday's pounding on trader positioning ahead of this weekend's G8 meeting.

Treasury bonds rose on continued relief over the government's mostly successful auctions of $65 billion worth of debt this past week. The 10-year yield ended the week lower after jumping to 8-month highs near 4.0% mid-week, closing at 3.78%.

The Dow, Nasdaq, and S&P traded mixed and ended the week only slightly higher as US Import Price data rose less quickly than expected in May, while Export Prices added 0.6% month-on-month.

The Michigan Sentiment Index rose for the fourth month running to give its best showing since October.

Next week's economic highlights include the NY Empire Manufacturing Index and Net Long-Term TIC Flows on Monday, Building Permits, Housing Starts, PPI, Capacity Utilization, and Industrial Production on Tuesday, CPI on Wednesday, and Initial Jobless Claims, Leading Economic Indicators, and the Philadelphia Fed survey on Thursday.

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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