Gold News

Gold & Silver Tick Higher as Bank "Stress Tests" Spook Wall Street

From Chris Mullen at GoldSeek.com...

The Gold Price traded modestly higher in Asia on Tuesday and fell slightly in London to see a 90 cent loss at $900.05 before it jumped higher in early New York dealing to a 10-session high at $915.50 an ounce.

The Gold Price then fell back off into the close, however, and ended with a gain of just 0.3%. The Gold Price in Euros climbed to about €678.

Silver followed a similar pattern and climbed to as high at $13.57 before it also fell back off into the close, but it still ended with a gain of 2.6%.

Platinum gained $12 to $1127, and copper fell over 6 cents to about $2.08.

Gold Mining and silver equities rose about 2% at the open, but they then fell back off for most of the rest of the day and ended mixed and near unchanged.

Oil fell slightly on Wednesday's likely inventory builds as the US Dollar index and Treasuries rose on successful debt auctions and worries over the results of the bank stress tests.

The Dow, Nasdaq, and S&P all ended slightly lower after Fed chairman Ben Bernanke warned of a possible "relapse" in the credit markets, and the central bank's "stress tests" of 19 leading banks showed 10 requiring further capital.

On the data front, the ISM Services index continued to show a contraction in April, but picked up to 43.7 from March's reading of 40.8.

Wednesday at 13:15 BST brings the private-sector ADP Employment report, expected to show 643,000 job losses for April.

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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