Gold News

Gold Price Ticks Higher as Bernanke Re-Appointed, US Deficit Revised, Stock Rally Fades

From Chris Mullen at GoldSeek.com...

Gold traded modestly higher in Asia and London on Tuesday, rising to see an $11.32 gain at $954.07 by 09:00 in New York.

The Gold Price then fell back off into the close, cutting its gains to $1 for the day at $943.90 an ounce. The Gold Price in Euros remained at €659 an ounce.

The US Dollar index ended barely lower in mixed trade, while oil reversed an early move higher to $75 per barrel and ended with a 3% loss on what traders called profit taking ahead of Wednesday's US inventory stockpile data.

Treasuries fell early, while the Dow, Nasdaq, and S&P rose on better than expected economic data that raised hopes over future growth. But bonds eventually turned higher and stock ended with only slight gains after a two-year note auction went off successfully.

The White House raised its projection for the US public deficit to $9 trillion over the next 10 years. US president Barack Obama also confirmed a second term as chief central banker for Ben Bernanke, chairman of the Federal Reserve.

A US court ordered the Federal Reserve to comply with a Freedom of Information request from Bloomberg News regarding financial companies taking emergency aid during the banking crisis.

Silver meanwhile traded lower in Asia and London before it rose to see a $0.193 gain at $14.403 by the New York opening. Silver then fell mid-morning trade, but it rallied to a new high of $14.413 at midday and ended near that high with a gain of 0.6%.

Platinum gained $3.50 to $1238, and copper fell roughly 6 cents to about $2.85.

Gold Mining and silver equities rose over 2% at the open before they chopped their way lower, but they still ended with about 1% gains.

New data on the Case-Shiller Home Price Index showed a marked upturn in June from May, cutting the year-on-year drop to -15.4% from -17.0%.

US Consumer Confidence turned sharply higher in August, the Conference Board said, rising to 54.1 and signaling expansion against Wall Street's forecast of 47.9.

Wednesday at 08:30 EST brings US Durable Goods Orders for July, expected up 3.2%. Excluding transportation, orders are expected up 1.0%. Then at 10:00 comes the New Home Sales report for July, expected at 390,000.

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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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