Gold News

Gold Jumps to Near Record Price as Oil Breaks $100, US Bonds & Stocks Fall

From Chris Mullen at GoldSeek.com...

Gold steadily rose throughout world trade on Tuesday and climbed to as high as $930.50 by noon in New York before it came back off slightly in the last hour and a half of trade.

Oil meantime rose nearly 5% to more than $100 per barrel on supply concerns as worries escalated in Nigeria and Venezuela.

Opec hinted it won’t raise production at the oil cartel's next meeting, and several refinery problems developed as well.

The Dow, Nasdaq, and S&P rose markedly in morning trade on a better than expected report from Wal-Mart, but all three indices turned lower mid-afternoon on inflation worries and closed with slight losses.

The Gold Market ended with a gain of 2.6% from Friday’s close (the last session before the long Presidents Day weekend) and it came just 40 cents within setting a new record closing high.

Silver climbed to $17.57 before it also came back a bit, but it still ended with a gain of 2.2% at a new 27 year closing high.

The Gold Price in Euros rose to about €629, platinum gained $92.50 to $2140 to a new record high, and copper rose over 10 cents to about $3.73.

Gold and silver equities rose throughout trade and ended with nearly 5% gains.

There were no major economic reports on Tuesday, but Wednesday at 13:30 GMT brings US Building Permits for January, Housing Starts, Consumer Price Inflation (expected at 0.3%) and Core CPI (expected at 0.2%).

At 14:00 GMT comes the release of the Federal Reserve committee's minutes from their January 30th meeting.

The US Dollar index fell Tuesday on expectations that China and Australia will hike interest rates to combat inflation, while the outlook for US continues to be rate-cutting due to the economic slowdown and credit crunch.

Treasury bonds fell on worries that Wednesday's CPI report will start to show increasing inflation due to the recent Fed rate cuts.

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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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