Gold News

Gold closes 0.43% higher as Producer Prices rise, Treasuries fall

from Chris Mullen of GoldSeek...

Gold traded modestly higher around $650 in Asia and London before it fell to $645.50 shortly after the open in New York, but it next rose to new highs above $652 by 10am EST, fell back off a few dollars in later morning trade, and then bounced back near its highs in afternoon trade and ended with a gain of 0.43%.

Silver dropped to $12.90 in early New York trade, but it soon rose about 20 cents, remained near its highs into the close, and ended with a gain of 0.61%.

Gold priced in Euros rose near €490, platinum gained $1 to $1,284, palladium gained $1 to $371, and copper gained nearly 8 cents to about $3.40.

Gold and silver equities rose over 1% at the US open and remained near their highs into the close.

Initial jobless claims came in as forecast around 311,000 for the week-ending 6 June. The US Producer Price Index rose 0.9% in May from April, beating expectations. Core PPI was 0.2%.

Also making economic news was data from the Mortgage Banker Association showing a record high foreclosure rate in the first quarter. Tomorrow at 8:30am EST brings the Current Account for the first quarter expected at minus $202.0 billion, CPI for May expected at 0.6%, Core CPI expected at 0.2%, and the NY Empire State Index for June expected at 12.0.

At 9:00am EST are Net Foreign Purchases for April, at 9:15 are Capacity Utilization for May expected at 81.6% and Industrial Production expected at 0.2%, and at 10AM is the preliminary reading for June Michigan Sentiment expected at 88.0.

In the wider markets, oil rose over 2% on worries over rising Middle East tensions and continued refinery problems.

The US Dollar Index rose and Treasuries fell as PPI came in higher than expected and pushed interest rates higher, though moves were somewhat limited ahead of tomorrow’s CPI report.

The Dow, Nasdaq, and S&P rose as most seemed to ignore higher than expected PPI and instead concentrated on tame Core PPI that came in as expected.

Among the big names making news in the market today were Chicago Mercantile and CBOT, Freddie Mac, Goldman Sachs, and Bear Sterns.

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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