Gold News

Gold & Silver Slide Overnight as Wall Street Slips on New $700Bn Bank Rescue

From Chris Mullen at

Spot Gold fell as much as $18.45 to $950.80 by late trade in Asia on Wednesday before it climbed back higher in London.

Rising as high as $978.20 to see a gain of $8.95 a little after 10:00 in New York, Gold Bullion then fell back off in the last couple of hours of trade and ended with loss of 0.5% for the session.

Silver followed a similar pattern, ending with a loss of 0.6%.

Both metals then fell almost 2% further in after-hours access trade.

The Gold Price in Euros remained near €757, platinum gained $8 to $1049, and copper gained nearly 4 cents more to about $1.52.

Gold Mining and silver equities rose over 3% by midmorning, but they then fell back off for the rest of the day and ended with over 1% losses on the day.

Crude oil rose over 6% on signs of increasing demand and reports of US inventory stockpiles at lower levels than expected.

Crude inventories rose just 700,000 barrels last week, while gasoline inventories fell 3.4 million barrels, and distillates rose 800,000 barrels.

The Dollar meantime strengthened after Fed chairman Ben Bernanke finished his two-day testimony before the House Financial Services Committee and gave his Monetary Policy Report, while Treasuries fell markedly as the Dow, Nasdaq, and S&P reversed morning losses.

The major indices then fell again, however, ending around 1% lower as details for President Obama's new stimulus plans - referenced during his Tuesday speech to Congress – began to be released.

New York's biggest banks are being granted immediate access to a further $700 billion in emergency loans. The Treasury Department will gain the right to convert these injections into common stocks at a 10% discount to their pre-Feb. 9th price.

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.

See the full archive of Chris Mullen articles


Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals