Gold Ends Tues Unchanged as US Rate Hikes Look Unlikely Despite Stronger Inflation
From Chris Mullen at GoldSeek.com...
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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