Gold News

Gold Price Rises with Dollar as Stocks Lose 5% from 9-Week Winning Streak

From Chris Mullen at GoldSeek.com...

The Gold Price fell early Friday to $923.55 in London before it spiked up to $929.35 in reaction US consumer-price inflation data.

Excluding fuel and food, CPI rose 0.3% month-on-month in April, well ahead of analyst expectations.

The Gold Price then pared its gains over the next hour of trade, but it soon rose to new highs in late-morning New York trade and ended Friday near its session high of $933.50 with a gain of 0.3% for the day.

For the week, the Gold Price rose 1.7% to its best finish since March. The Gold Price in Euros rose to €688 an ounce.

Silver fell to its session low of $13.847 just after the release of the CPI data, before bouncing and the falling off to close a loss of 0.5% for the day. For the week silver was 0.2% higher.

Platinum lost $3.50 on Friday to $1104, and copper remained at about $2.03.

Gold Mining and silver equities climbed over 1% by late morning before they fell back off in afternoon trade and saw over 2% losses at one point, but they then rallied back higher in the last hour of trade and ended with about 1% losses on the day.

For the week, both the HUI and XAU Gold Mining stock indices stood some 1% lower.

Oil fell nearly 4% Friday while the US Dollar index rose on another round of poor US industrial production data, discouraging risk taking and causing a minor sell-off in the Dow, Nasdaq, and S&P.

The major US stock indices ended the week up to 5% lower after rising for nine.

Treasuries, however, were not able to catch their historical safe haven bid and bonds ended lower on possible worries over upcoming supply. Ten-year US Treasury yields closed the week down at 3.1%.

Next week's economic highlights include Building Permits and Housing Starts on Tuesday, FOMC Minutes on Wednesday, and Initial Jobless Claims, Leading Economic Indicators, and the Philadelphia Fed 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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