Gold News

Gold Loses 1.8%, Silver Drops 4%, as Miners Plunge, Euro & Oil Bounce

From Chris Mullen at GoldSeek.com...

Gold rose to see a gain of $6 an ounce at $1220 in late Asian trade on Wednesday, but it then fell off markedly for most of London and New York trade.

The Gold Price ended near its late session low of $1187.25 with a loss of 1.8% on the day.

Euro Gold fell to about €967 an ounce.

Oil rose a little after the Energy Information Administration reported that US crude oil inventories rose 200,000 barrels and gasoline inventories fell 300,000 barrels last week.

The US Dollar index fell as the Euro bounced from Tuesday's new four-year low.

Treasuries reversed early losses and turned higher as the Dow, Nasdaq, and S&P fell on continued worries about the impacts of Germany's ban on some types of short selling.

Silver fell to as low as $17.929 by early afternoon in New York and ended with a loss of 4.0%.

Platinum lost $82 to $1598, and copper dropped 7 cents to about $2.95.

Gold Mining and silver equities fell over 5% by late morning before they rebounded slightly in afternoon trade, but they still ended with about 4% losses.

Minutes from the Federal Reserve's latest policy meeting showed voting members were "in no rush" to sell $1.1 trillion of mortgage-backed securities. The majority prefer to wait until after the central bank starts raising interest rates – a move delayed again, for the 18th month running, by a

US consumer prices held flat month-on-month in April, rising 2.3% from a year earlier, new data showed.

Demand for home-purchase mortgages meantime fell to a 13-year low.

Thursday at 08:30 ET brings Initial US Jobless Claims for last week, expected at 439,000. At 10:00 comes the Leading Indicators for April, expected up 0.2%, and the Philadelphia Fed survey for May, expected at 20.7.

Looking to Buy Gold or silver today...? Start with a free gift of bullion at BullionVault now...

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