Gold News

Gold Price Gains 1.8% on Weds as Dollar Sinks, Everything Else Surges

From Chris Mullen at GoldSeek.com...

The price of Gold surged from an early fall to $924.15 in Asian trade Wednesday to end New York near its highs of $948.90 with a gain of 1.81% for the session.

Crud oil meantime rose to another new record intraday high over $115 as supply disruptions continued and US inventory stockpiles came in lower than expected.

US oil inventories fell 2.3 million barrels rather than an expected gain, gasoline inventories fell a larger than expected 5.5 million barrels, distillates rose just 100,000 barrels, and refinery utilization fell 1.6% to 81.4%.

Strong US inflation data for March – up 4.3% from March 2007 – failed to support the Dollar, which meantime fell dramatically to a new record low despite higher open-market interest rates in the United States.

The Fed’s Beige Book of economic stats then confirmed the recent economic downturn due to problems in the housing and credit markets that have resulted in cuts in consumer spending.

Treasuries fell as the Dow, Nasdaq, and S&P rose throughout most of trade on strong earnings reports, while the Euro rose to a new record high versus the Dollar on strong Eurozone inflation data that makes it less likely the ECB will join the Fed in cutting interest rates.

The Gold Price in Euros still rose near €592, however, as silver gained 2.8%, platinum gained $49.50 to $2019.50, and copper gained nearly 10 cents to about $3.99.

Gold and silver equities rose strongly throughout US trade and ended near their highs with gains of almost 6%.

Thursday at 13:30 GMT brings Initial US Jobless Claims for last week, expected at 375,000; then Leading Indicators for March, expected at 0.1%; and finally the Philadelphia Fed survey for April, expected at -15.0.

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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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