Gold News

Gold Ends Tues 0.3% Higher as Oil Surges, Dollar Bounces, Traders Await Inflation Data

From Chris Mullen at GoldSeek.com...

The Gold Price rose Tuesday over $10 as high as $936.40 by midday in London before the Gold Market then fell back near unchanged and ended New York trade with a gain of just 0.29% at $928.15 per ounce.

Oil rose to a new record high near $114 on more supply worries as US imports from Venezuela were reported 18% down, several Mexican ports closed down due to bad weather, and Russia’s total oil exports slid 1% for the first three months of 2008 from the same period last year.

These supply shortfalls added to Monday’s reports of a temporary US pipeline shutdown plus fresh unrest in Nigeria, while Opec – the oil cartel – remains at current output levels with no signs of an increase.

The US Dollar index rose and Treasuries fell as economic data came in higher than expected – led by Producer Price inflation, up 1.1% in March from Feb. – pushing open-market interest rates up.

Movements were relatively limited, however, as traders waited for Wednesday’s Consumer Price data to help confirm or deny an economic rebound and/or higher inflation readings.

Silver prices rose as high as $18.04 in Asia before they fell as low as $17.67 by midmorning in New York. Silver ended with a gain of 0.17%.

The Gold Price in Euros rose to about €588, platinum gained $10 to $1970, and copper fell over 3 cents to about $3.89.

Gold and silver equities traded roughly 1% higher for most of the day and ended near their highs of the session with about 1.25% gains.

The Dow, Nasdaq, and S&P traded mixed in low volume before ultimately ending higher on mostly better then expected earnings reports.

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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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