From Chris Mullen at GoldSeek.com...
Gold Prices steadily rose throughout most of world trade on Wednesday, ending near the high of $882.90 with a gain of 1.41%.
Oil rose over $5 as US crude inventory stockpiles once again surprised the market with a large decline. Oil inventories have now fallen almost 24 million barrels in just the past 4 weeks.
Exxon Mobil also reported a malfunction at a refinery, and Russia announced declining output as well. Previously it was Russia’s rising oil output that was covering for the increased demand out of China and India. A reversal of this situation could prove to be quite bullish for the overall demand/supply picture.
West Texas oil closed just $2.16 below the new record closing high set last Friday.
The US Dollar index fell as traders began to doubt whether all of the Fed and government talk of a Strong Dollar over the past week will actually be followed up by any action.
Silver fell slightly to $16.50 by late trade in Asia, but it then stabilized in London, climbed nicely in morning New York trade, and ended near its high of $16.90 with a gain of 1.63%.
The Gold Price in Euros rose to about €566, platinum gained $41 to $2037.50, and copper rose a couple of cents to about $3.58.
Gold and silver equities rose over 1% by late morning before they fell back off a bit as the major indices fell roughly 2% in afternoon trade, but the miners still ended at about unchanged on the day.
Treasuries rose as the Dow, Nasdaq, and S&P fell markedly on another dramatic rise in oil prices, further concerns over inflation, and more worries about Lehman Brothers and the financials.
On the data front, the Fed’s monthly Beige Book noted some ability of businesses to pass along higher costs despite the continued economic slowdown.
Thursday at 13:30 GMT brings US Import & Export Prices for May, plus Retail Sales for last month – expected at 0.5% growth – and Initial Jobless Claims for last week, expected to read 370,000.
At 15:00 GMT comes the Business Inventories report for April, expected at 0.3%.
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