Gold News

Gold Adds 2.2%, Silver Up 1.9% as US Data Dents the Dollar

From Chris Mullen at GoldSeek.com...

Gold and silver traded slightly lower in Asia and London on Wednesday, but both metals then climbed steadily higher throughout New York trade.

The Gold Price ended near its high of $979.35 with a gain of 2.2% for the day. Silver ended near its high of $15.46 with a gain of 1.9%.

The Gold Price in Euros rose to €684 an ounce. Gold Mining and silver equities climbed markedly for most of US trade and ended with about 9% gains.

Platinum gained $3 to $1222, and copper rose slightly to about $2.81.

Oil reversed early losses and turned modestly higher after the Energy Department reported that US crude inventories fell 400,000 barrels and gasoline inventories fell a larger than expected 3 million barrels last week.

The price per barrel then fell back to unchanged by the close on worries over the sustainability over any recent energy demand increases.

The US Dollar index erased early gains and moved noticeably lower by the close as the stock market remained relatively unaffected worse than expected economic data that lifted only the Yen on some risk aversion.

Treasuries saw slight gains while the Dow, Nasdaq, and S&P waffled near unchanged and ended modestly lower on a rather slow summer day heading into the long Labor Day weekend.

Minutes from the Federal Reserve's August 12th meeting showed that policymakers saw only a slow recovery in the economy, with fiscal stimulus needed to help into 2010.

There was some disagreement about the inflation outlook and particular concern about the jobs market.

Some 298,000 jobs were lost at private-sector firms in August, according to the monthly ADP payrolls report. US Productivity showed a 6.6% jump in the second quarter, but only because working hours sank faster than output.

Factory orders for July came in below expectations.

Thursday at 08:30 EST brings Initial US Jobless Claims for last week, expected at 570,000. Then at 10:00 comes the ISM Services report for August, expected at 48.0.

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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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