Gold News

Gold & Silver Fall Again, Mining Stocks Drop 3%, as Obama's Banking Plans Whack Wall Street

From Chris Mullen at GoldSeek.com...

Gold saw slight gains in Asia on Thursday, but then fell 1% towards $1100 in London before it rebounded early in New York trade, only to fall back to a new low of $1088.45 in late morning trade.

Treasuries meanwhile rose as the Dow, Nasdaq, and S&P fell over 1% on poor
earnings reports and worries over new banking regulations proposed by
President Obama, particularly new limits on size and a block on banks'
proprietary trading of their own – rather than clients' – money.

Gold
priced in Dollars finally rallied higher in the last couple of hours of trade and ended with a loss of just 0.9%, more than $14 above its low.

The Gold Price in Euros fell to €781 an ounce as the US Dollar index rose after new data showed Initial Jobless
Claims rising much faster than expected, but the Leading Indicators
report came in at 1.1% rather than the 0.7% forecast.

The Philadelphia Fed's January Index dropped to 15.2 from Dec's reading of 22.5.

Silver followed a similar rollercoaster ride to Gold and ended over 1% above its midday low of $17.32 with a loss of 2.3%.

Platinum lost $24 to $1592.50, and copper fell another 6 cents to about $3.29

Gold Mining and silver equities fell over 3% by late morning and remained near their lows into the close.

Oil fell after the Energy Information Administration announced that US crude inventory stockpiles fell only 400,000 barrels last week, while gasoline inventories rose 3.9 million barrels.

There are no major US economic reports due out on Friday.

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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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