Gold News

Gold Price Ends Tues 1.8% Higher as US Consumer Confidence Sinks to "Watergate" Depths

From Chris Mullen at GoldSeek.com...

Gold Prices rose over $935 per ounce in London on Tuesday before dropping back near $925 by late morning in New York.

The Gold Market then rallied higher into the close and ended near its high of $936.00 with a gain of 1.8%.

Silver was more volatile again, rising to $17.75 in London before it dropped near $17.30 by late morning in New York. Silver prices then rallied back higher into the close and ended near the high of $17.81 with a gain of 4.2%.

Both metals then exceeded their prior COMEX highs in after-hours access trade.

The Gold Price in Euros rose to over €598 per ounce, platinum gained $81 to $1960, and copper gained nearly 5 cents to about $3.70.

Gold and silver equities rose over 4% by about an hour into trade, remained near their highs for the rest of the session, and closed just barely off their session highs with nearly 5% gains.

Following Monday's reported bounce in Feb. home sales, the S&P Case-Shiller home price index showed a record fall of 10.7% for the past year, adding to disappointment as the Conference Board's Consumer Confidence index fell to its lowest level in five years.

The Conference Board's gauge of expectations for the next six months slumped harder, dropping to 47.9 – the lowest since December 1973, back when Watergate rocked the Nixon administration and the first Opec oil crisis was biting.

Wednesday at 13:30 GMT brings US Durable Goods Orders for February expected at 0.8% and at 15:00 GMT is the New Home Sales report expected at 580,000.

Crude oil meantime fell near $99 at one point on Tuesday and traded slightly lower for most of the session on worries over a US recession, but it moved back above $101 and found a small gain by the close on cold weather forecasts and a weak Dollar, which fell on those weak economic data.

The Dow, Nasdaq, and S&P remained near unchanged, while Treasury bonds rose on hopes of more interest rate cuts to come from the Fed.

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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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