Gold News

Gold Slips, Silver Gains, as US Stocks Bounce from "Obama Sell-Off"

From Chris Mullen at

Gold rose a further $10 per ounce to $864.50 by early trade in London on Wednesday, before it dropped back to $843 a little before noon in New York.

Gold Prices then rallied back higher in afternoon trade and ended with a loss of just 0.41%.

The US Dollar index and Treasuries fell, meanwhile, as the Dow, Nasdaq, and S&P bounced hard from Tuesday's "Obama Sell-Off" on renewed confidence in the banking sector, with the likeliness that New York Fed governor Timothy Geithner will be confirmed as the new president's Treasury Secretary this week.

Crude oil rose nearly 7% on news of additional supply reductions by the Opec oil cartel.

Silver climbed to $11.51 before losing 50¢ an ounce. It then rallied to end at $11.28 with a gain of 1.1% for the session.

The Gold Price in Euros remained at about €661, platinum lost $17 to $919, and copper fell over 7 cents to about $1.42.

Gold Mining and silver equities fell nearly 3% by late morning, but they then rallied back higher in afternoon trade and ended with roughly 3% gains.

There were no major economic reports Wednesday, but the NAHB reported that US home-builder sentiment has sunk to a new low in January.

Thursday at 13:30 GMT brings new US Building Permits for Dec., expected at 615,000, plus Housing Starts (expected at 610,000) and Initial Jobless Claims for last week, expected up at 548,000.

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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