Gold News

Gold Ends the Week Higher as Stocks Slip, US Savings Data Spooks the Street

From Chris Mullen at GoldSeek.com...

Gold and silver steadily rose in Asia and London on Friday and climbed as high as $947.55 and $14.30 respectively by 08:30 EST in New York.

Gold Prices then fell back off, rallying in the last hour-and-a-half of trade to end with a gain of 0.2% for the day and 0.5% for the week.

Silver was able to add a respectable 0.8% for the session, but lost 0.6% on the week. Platinum gained $10 to $1197.50, and copper remained at about $2.30.

The Gold Price in Euros lost €1 from the previous Friday to close at €668 an ounce, while UK Gold Prices added £2 to £568.

Oil fell back below $70 on renewed worries over demand and a calming of tensions in Nigeria after pledges to abide by a 60-day ceasefire.

The US Dollar index fell after China again called for a new worldwide currency to replace the Dollar, with the restatement of People's Bank governor Zhou Xiaochuan’s proposal from March adding to speculation that China will diversify its near $2 trillion currency reserves – the world's largest – of which $763.5 billion is in US Treasury bonds.

Treasuries rose Friday, however, adding to this week's gains to push the 10-year yield down to 3.50% as the Dow and Nasdaq fell noticeably at the Wall Strreet opening on news that Americans are Saving Cash at a much higher rate than expected.

Stocks then ground back higher for the rest of trade and ended near unchanged on the day, down some 1.2% for the week.

Gold Mining and silver equities rose nearly 1% at the New York open on Friday before they dropped to see roughly 2% losses at midday. They then chopped back higher in afternoon trade and ended with a little over 1.5% losses for the session, some 3.5% higher on the week.

After new data showed US Personal Incomes rising 1.4% in May from April – driven by Government Benefits – next week brings Consumer Confidence, the S&P/Case-Shiller Home Price Index, and Chicago PMI on Tuesday; Chicago PMI, Construction Spending, the ISM Index, and Pending Home Sales on Wednesday; plus June's jobs data, Initial Jobless Claims, and Factory Orders on Thursday.

US markets will be closed on Friday for the Fourth of July holiday.

Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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