Gold Drops, Silver Jumps as Wall Street Loses 5% After US Election
From Chris Mullen at GoldSeek.com...
Gold Prices jumped to reach $763.35 by midday in London on Wednesday, but then plummeted in late morning New York trade as low as $735.90 an ounce.
The US Dollar index rose slightly as currency traders prepared for Thursday's much-anticipated rate cuts from the Bank of England and European Central Bank. But oil gave up a large portion of Tuesday's notable gains as sentiment returned to poor economic conditions and falling demand.
Gold Investment prices then rallied, but still ended with a loss of 2.05% for the session. Silver fell 6 cents to $10.08 in Asia and rose to about $10.50 by late morning in New York before it dropped back as gold sold off. It then rallied fiercely to end near its new session high of $10.58 with a gain of 3.16%.
Treasury bonds rose and the Dow, Nasdaq, and S&P fell over 5% as the reported loss of 157,000 private-sector jobs in October put the focus back on the severe economic problems facing the United States following the election of Barack Obama as president.
The Gold Price in Euros fell to about €570, platinum gained $21 to $863, and copper lost roughly 14 cents to about $1.81.
Gold and silver equities saw slight gains in midmorning trade, but they then fell about 4% by early afternoon and remained at about that level for the rest of the day.
Thursday at 08:30 EST brings official Initial Jobless Claims for 11/01 – expected at 476,000 – and then third-quarter Productivity, expected at 1.0%.