Gold News

Gold Gains, Silver Falls, as Wall Street Falls on Lower Earnings

From Chris Mullen at

The Gold Price traded slightly higher in Asia and London on Tuesday, before it fell as much as $7.20 to $762.25 by late morning in New York.

Gold then rallied as high as $780.30 in early afternoon trade, falling back off into the close but ending with a gain of 0.52% for the day.

Silver fell as low as $9.637 an ounce late morning in New York, rallying higher in late trade but still ending with a loss of 1.3%.

The Gold Price in Euros held near €598 an ounce, platinum lost $33.50 to $801.50, and copper fell nearly 6 cents to about $1.42.

Gold Mining and silver equities fell nearly 3% at the open, but they then rallied back higher for most of the rest of trade and ended with about 1% gains despite roughly 2% losses in the major indices.

Oil fell after the US Energy Information Administration (EIA) slashed its outlook, expecting global oil consumption to reduce by 50,000 barrels a day in 2008 and a further 450,000 barrels a day in 2009.

The US Dollar index and Treasury bonds rose as the Dow, Nasdaq, and S&P fell on renewed economic worries. FedEx cut its annual profit outlook on falling demand for its services. Pending US home sales for Oct. showed a 0.7% drop.

Wednesday at 15:00 GMT brings the Wholesale Inventories report for Oct – expected 0.2% higher – followed by the US Treasury Budget for Nov., expected to show a $171.0 billion deficit.

Also expected at some point tomorrow is a finalized plan from Congress to bail out the "big three" Detroit automakers.

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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