Gold Prices Slip, Silver Drops 2%, as Stocks, Oil & T-Bonds Fall vs. Rising Dollar
From Chris Mullen at GoldSeek.com...
Gold Prices climbed higher in Asia on Wednesday and rose to over $1120 an ounce in early London trade.
Gold Prices then fell back for most of the rest of the day and ended with a loss of 0.5% against the Dollar, but held steady against the Euro at €799.
Silver neared $17 in Asia before it also fell back off in London and New York and ended with a loss of 2.2%.
Platinum stayed at $1573.50, and copper fell over 11 cents to about $2.97.
Crude oil also ended lower after the Energy Information Administration reported that US crude inventory stockpiles surprisingly rose 2.3 million barrels last week.
The US Dollar index rose as traders looked ahead to Thursday’s European Central Bank and Bank of England policy meetings, as well as Friday’s official US jobs data.
The private-sector ADP Payrolls report showed fewer job losses than analysts expected for Jan. The ISM index of activity in the services sector improved from Dec., but less quickly than forecast.
Treasury bonds meantime fell on worries over the market’s ability to absorb a new record volume of supply after it was announced that Washington will be selling a record high amount of debt next week, comprised of $40 billion in three-year notes, $25bn in 10-year bonds, and $16bn in 30-year bonds.
The Dow, Nasdaq, and S&P traded slightly lower on disappointing earnings data. Gold Mining and silver equities saw slight gains at the open, but they then fell back off for most of the rest of trade and ended with about 1% losses on average.
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