Gold News

Gold Falls, Silver & Mining Stocks Sink, as US Equity Rout Worsens

From Chris Mullen at

Gold fell nearly 2% in Asia and London on Thursday before tumbling even further in New York as the Dow, Nasdaq, and S&P fell hard on bail-out uncertainty.

Gold Bullion then rebounded $13.60 from its low in the last couple of hours of trade, but it still ended with a loss of 4.5%.

Silver followed a similar pattern, adding its typical acceleration, ending with a loss of 12%.

The Gold Price in Euros fell roughly €19 to €609, platinum lost $60 to $971, and copper fell nearly 15 cents to about $2.65.

Gold and silver equities steadily fell for most of the day and ended with over 15% losses.
Crude oil fell on concerns over falling world demand while the US Dollar rose markedly versus the Euro after the European Central bank (ECB) held its rates steady but opened the door to cutting next month.

Not only was ECB chief Trichet tame on inflation, but he also voiced concerns over slowing economic growth. That certainly lowered the outlook for not only weak European growth relative to the US, but also for global economic strength overall.

The US Banking Bail-Out Bill still awaits Friday's House vote after previously failing on Monday. Much worse than expected economic data was not to encouraging to stock market buyers either, with initial US jobless claims surging last week and factory orders sinking 4% in August.

Friday at 13:30 GMT brings September's US jobs data. Non-farm Payrolls are expected down 105,000, with the Unemployment Rate set to rise to 6.1%.

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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