Gold News

Gold, Silver, Euro & Stocks Bounce as Dollar Weakens Ahead of Fed Testimony

From Chris Mullen at

The Gold Price then fell back almost $9 an ounce, but it rose to a new session high of $1082.93 by early afternoon and ended not far from that high with a gain of 1.0%.

The Gold Price in Euros rose to €781 an ounce.

Silver jumped as high as $15.36 an ounce, dropped back down to $15.19, and then climbed to a new high of $15.57 and ended with a gain of 2.3%.

Platinum gained $20.50 to $1494, and copper gained over 7 cents more to about $2.98.

Gold Mining and silver equities rose over 4% by early afternoon and remained near their high into the close.

Oil rose on cold weather, the US Dollar index fell rather markedly as the Euro rose, and the Dow, Nasdaq, and S&P climbed over 1% higher on hopes that the EU will step in and help Greece manage its debt problems.

Treasuries fell after Tuesday's $40 billion 3-year note auction sold at a high yield of 1.377% with a bid to cover of 2.83.

On the data front, Wholesale US Inventories showed a 0.8% drawdown for Dec., rather than the 0.5% build expected after Nov.'s sharp reduction of 1.6%.

Wednesday at 08:30 EST brings the US Trade Balance for December, expected at minus $35.5 billion, and at 14:00 comes the Treasury Budget for January, expected at minus $50.0 billion.

Fed chair Ben Bernanke will also be testifying before the House Financial Services Committee at around 10:00, with a focus on the US central bank's plans to withdraw emergency stimulus from the US economy.

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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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