Gold Jumps Yet Again on Record Oil, Tumbling Dollar & Stocks; "Fed Out of Bullets"
From Chris Mullen at GoldSeek.com...
Gold Prices rose above $927 by midday in London on Wednesday before falling back to $916.30 early in New York.
Oil rose to another new record high of $133.72 a barrel after US crude inventories unexpectedly showed a drop of 5.4 million barrels.
Gasoline prices rose to a new record over $3.80 a gallon as gasoline inventories fell 800,000 barrels. Distillates built 700,000 barrels and refinery utilization rose 1.3% to 87.9%.
The Gold Market then rallied back higher for most of the rest of trade and ended near its high of $930.70 with a gain of 0.9%.
Silver rose to over $17.80 and fell to $17.56 before it also rallied back higher and ended near its high of $18.01 with a gain of 2%.
The Gold Price in Euros rose over €588 per ounce, platinum gained $52.50 to $2186.50, and copper fell almost four cents to about $3.75.
Minutes from the Federal Reserve's April 30th meeting showed a lower growth forecast, higher inflation and unemployment expectations, plus an unwillingness to cut rates any further even if financial problems persist.
The Fed still sees inflation pressures moderating in the longer term despite a short term outlook of inflation risks increasing.
The US Dollar index fell after German business sentiment came in better than expected, bettering the case for the ECB to hold or even start raising Eurozone interest rates.
US Treasury bonds ended lower on inflation fears while the Dow, Nasdaq, and S&P fell up to 1.7% on the Fed's warning of no more interest rate cuts. The Fed is out of bullets and people are justifiably worried about the economy.
Gold and silver equities rose over 1% by early afternoon before they fell back off a bit as the general indices fell almost 2% in late trade, but the miners still ended with only minor losses.
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