Gold News

Gold Ends Tues Unchanged as US Rate Hikes Look Unlikely Despite Stronger Inflation

From Chris Mullen at

Gold Prices rose $5 per ounce to $888.50 by late trade in Asia on Tuesday, before falling over 1% to $874.20 by 09:00 EST in New York.

But the Gold Market then rallied back higher into the close and ended with a gain of 0.13% even as crude oil traded mostly lower on demand concerns.

Saudi Arabia's recent pledges for increased output pointed the way as traders prepared for Wednesday's US stockpile inventory reports.

The US Dollar index fell slightly and Treasuries rose on doubts that the Federal Reserve will actually raise US interest rates anytime soon, despite higher than expected Producer Prices reported for May, plus better than forecast Housing Starts and Building Permits.

Silver rose over 1% to $17.40 by late trade in Asia before it saw a roughly 2% loss at $16.83 per ounce. It also rallied back higher into the close, but ended lower by 0.76%.

The Gold Price in Euros remained at about €570 after a volatile day, platinum gained $14 to $2057.50, and copper fell a couple of cents to about $3.66.

Gold and silver equities rose over 1% by midmorning before they fell back off a bit as the major indices dropped, but the miners still ended with about 1% gains.

The Dow, Nasdaq, and S&P fell on that PPI reading, evidence that higher energy prices are working their way through the rest of the economy. Banking stocks were a notable weak note as Goldman Sachs reported better then expected earnings but also expressed the need for banks to raise additional capital.

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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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