Gold News

Gold Prices Dump $20 as Dollar Bounces on New Home Sales

From Chris Mullen at

Gold Prices rose a few dollars to $929.15 by late trade in Asia on Tuesday and held near $925 in London before plunging more than 2% early in New York.

Oil fell on worries that recent high prices may finally be starting to cut into demand. Supply concerns in Nigeria and Mexico seemed to have little impact on the market.

The US Dollar index rose and Treasury bonds fell as a better than expected New Home Sales report pushed US interest rates higher in the open market. A weaker than expected German confidence report helped dent the Euro on the currency markets.

The Gold Market then bounced higher into the close and ended four dollars off that low with a loss of 1.92%.

Silver rose to $18.31 and plummeted to $17.37 before it closed with a loss of 4.39% for the session.

The Gold Price in Euros fell to about €577, platinum lost $43.50 to $2123, and copper fell slightly to about $3.74.

Gold and silver equities fell about 3% at the open and remained near their lows into the close, while the Dow, Nasdaq, and S&P mostly rose on optimism over the housing sector and lower energy prices.

But also making economic news was the Standard & Poor's/Case Shiller composite index of 20 metropolitan areas that fell 2.2% in March from February and plummeted a record 14.4% from a year ago.

Wednesday at 13:30 GMT brings US Durable Goods Orders for April, expected at minus 1.5%.

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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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