Gold News

Gold & Silver Rise as Strong US Data Buoys Stocks, Oil

From Chris Mullen at

Gold traded slightly lower in Asia and London on Tuesday, and fell further at the opening in New York to reach as low as $992.08 by 09:00 EST.

But the Gold Price then rallied throughout the rest of trade and ended near its late session high of $1006.20 with a gain of 0.5% for the day.

The Gold Price in Euros rose back to €686 an ounce.

Silver fell as low as $16.40 in early London trade, but it also rallied higher for the rest of the day and ended near its high of $16.962 with a gain of 2.1%.

The US Dollar index and Treasury bonds fell as stronger-than-expected US economic data – including a sharp jump in Retail Sales ex-autos and Producer Input Price inflation – sent crude oil and the Dow, Nasdaq, and S&P higher.

Both Gold and silver then climbed to new highs in after-hours "access" trade.

Platinum gained $11.50 to $1322, and copper gained four cents to about $2.83.

Gold Mining and silver equities steadily climbed higher for most of the day and ended with about 3% gains.

Fed chairman Ben Bernanke meantime told an audience at the Brooking Institute that the US recession has "very likely" ended already. This month's Empire State manufacturing index showed a surprise rise.

Wednesday at 08:30 EST brings US Consumer Price Inflation for August, expected up 0.3% from July, with Core CPI (excl. "volatile" food and fuel) expected up 0.1%.

At 09:00 comes the Net Long-term TIC Flows report for July, detailing investment cashflows into US securities, and at 09:15 comes Capacity Utilization for August and Industrial Production.

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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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