Gold News

Gold & Silver Rise with Stocks as US Inflation Jump Hits Dollar, Bonds

From Chris Mullen at GoldSeek.com...

Gold and silver steadily rose throughout most of world trade on Wednesday and ended near their highs of $941.35 and $13.37 an ounce with gains of 1.8% and 2.9% respectively.

The Gold Price in Euros rose to €666.

The Dow, Nasdaq, and S&P soared roughly 3% higher on better than expected earnings reports that raised hopes over the future of the economy.

US consumer prices showed a surprise jump for June, up 0.7% from May and rising twice-as-fast as forecast with volatile food and fuel costs excluded.

Industrial Production fell less than expected, while Capacity Utilization was stronger than analyst forecasts.

Minutes from the Federal Reserve's June 24th meeting noted that the US central bank is developing tools to remove its current extraordinary policy accommodation, but they will not begin removing liquidity facilities until next year.

The Fed also upgraded its economic outlook.

Oil rose markedly as the US Dollar index and Treasuries plummeted, pushing the 10-year yield nearly 15 basis-points higher to 3.60%.

Gold Mining and silver equities rose over 4% at the open and remained near their highs into the close.

Platinum gained $25.50 to $1151, and copper gained over 9 cents more to about $2.38.

Thursday at 08:30 EST brings Initial US Jobless Claims for last week, expected at half-a-million. Then comes the TIC Flows report for May, expected to show foreign purchases of US assets at $7.5 billion, with the Philadelphia Fed survey for July expected at -5.0 after that.

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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