Gold Prices Whip, Hit New Euro Record, as IMF Announces Sale, Fed Raises Rates, US Data Misses Forecasts
From Chris Mullen at GoldSeek.com...
Gold Prices fell as much as $21.45 to $1097.75 an ounce in Asia on Thursday, before climbing back in London, and then rising to see a gain by late morning in New York.
Reaching as high as $1123.75 by about 11:00 EST, the Gold Price then fell back off into the close and ended with a loss of 0.1% on the day.
The Gold Price in Euros meantime rose to a new all-time high above €825.
The International Monetary Fund (IMF) said it will sell the remaining 193 tonnes it still has slated for sale in the open market.
Silver meantime fell to $15.663 and rose to $16.253 before it also fell back off a bit in late trade and ended with a loss of 0.3%.
Platinum lost $15 to $1516.50, and copper gained nearly 5 cents more to about $3.29.
Gold Mining and silver equities rose over 2% by midmorning before they fell back near unchanged by early afternoon, but they then bounced back higher in the last few hours of trade and ended with about 1% gains.
The Dow, Nasdaq, and S&P rose almost 1% as traders ignored disappointing economic reports.
Oil climbed back above $79 a barrel on news that distillate inventories in the United States surprisingly fell 2.9 million barrels last week. Crude inventories rose 3.1 million barrels, and gasoline inventories rose 1.7 million barrels.
The US Dollar index first remained near unchanged – while Treasuries fell – but then rose on news after the market closed that the Federal Reserve raised its emergency lending interest rate by one-quarter point to 0.75%.
The first rise since hitting record lows – and also record lows vs. the central Fed Funds rate – in Dec. 2008, the move could support higher interest rates sometime in the future.
Initial US Jobless Claims for last week were much larger than expected, while Producer Price Inflation also outpaced analyst forecasts for Jan.
The Philadelphia Fed's survey was strong, but the Leading Indicators report weakened sharply.
Friday at 08:30 EST brings US Consumer Price Inflation for Jan., expected at 0.1%. Core CPI is expected up 0.1%.
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