Gold News

Gold Ends Weds 0.7% Higher as US Senate Approves $700bn Bail-Out

From Chris Mullen at

Gold fell $7.90 to $868.40 by midday in London on Wednesday, before rising above $887 by 10:00 in New York trade.

Gold Bullion then fell back near unchanged to $877.20 by late morning, but it rallied to a new high of $893.20 in the last two hours of trade and ended with a gain of 0.67%.

Silver fell $0.23 to $11.96 by midday in London before it rallied fiercely higher throughout most of New York trade and ended near its high of $12.967 with a gain of 3.69%.

The Gold Price in Euros rose to about €628, platinum gained $27 to $1031, and copper fell nearly 10 cents to about $2.80.

Gold and silver equities held near unchanged for a good part of the morning before they rose to see about 4% gains by around 14:00 EST, but they then fell back off into the close and ended only modestly higher.

The US Dollar index found slight gains on hopes the Senate would pass the Bailout Bill – which it did –but gains pared after ISM data came in much worse than expected and reported the biggest drop since 1984.

Treasury bond prices rose, pushing yields lower, on speculation the U.S. will enter a recession regardless of the lawmakers' plan.

The Dow, Nasdaq, and S&P fell markedly by midmorning before they flirted with slight gains in early afternoon trade, but they fell back off to end a bit lower on apprehension over the effectiveness of any government aid.

Oil fell over 2% as new data showed US crude inventories built a larger than expected 4.3 million barrels. Gasoline inventories rose 900,000 barrels rather than an expected drop, and distillates fell 2.3 million barrels.

Refinery utilization increased 5.6% to 72.3%.

Thursday at 13:30 GMT brings Initial US Jobless Claims for last week, expected at 475,000, following by the Factory Orders report for August, expected at -2.9%.

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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