Gold News

Gold Prices Ease back from Record Highs, Bernanke Tries to Play Down QE3

Chris Mullen at wraps up Thursday's action...

Gold Prices climbed to a new record high of $1594.30 in London on Thursday before easing back in early New York trade and saw a slight loss near $1580 around 11am EST. Gold Prices then rallied back higher in the last two and half hours of trade and ended with a gain of 0.29%.  

The Gold Price in Euros climbed to a new record high above €1122.

Silver Prices climbed to as high as $39.353 before they too fell back off a bit in New York, but still ended with a gain of 1.52%.

Gold and silver stocks traded about 1% higher in the first hour of trade, but they then turned almost 1% lower by midday and remained near that level for the rest of the day.

Platinum gained $8.50 to $1762.50, and copper fell a couple of cents to about $4.37.

Oil fell as the US Dollar index pared early losses and ended slightly higher after Bernanke reined in his stimulative comments from Wednesday's testimony before the House of Representatives Financial Services Committee.  

Speaking before the Senate Banking Committee Thursday, Bernanke told Congress that the central bank isn't currently ready to embark on a third round of government bond-buying to stimulate the economy.

Treasuries remained lower after Thursday's $13 billion 30-year note auction sold at a high yield of 4.198% with a bid to cover of 2.80.

The Dow, Nasdaq, and S&P turned lower midday and ended with modest losses after Bernanke back peddled on the possibility of QE3 and other stimulative measures.

Among the big names making news in the market were JPMorgan, ConocoPhillips, Joy Global, Borders, and Google.

Friday at 8:30am EST brings CPI for June expected at -0.1%, Core CPI expected at 0.2%, and Empire Manufacturing for July expected at 1.0.  At 9:15am is Industrial Production for June expected at 0.2% and Capacity Utilization expected at 76.8%, and at 9:55 is Michigan Sentiment for July expected at 71.4.

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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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