Gold News

Gold Ends Weds Higher as Stocks Fall on Banking "Sell"

From Chris Mullen at

Gold traded mixed in Asia on Wednesday, before it fell back off in London to see a loss of $9.25 at $1048.15 an ounce just ahead of the New York opening.

The Gold Price then rallied higher for most of the rest of trade, and ended near its late session high of $1064.75 with a gain of 0.5%.

The Gold Price in Euros fell to €707 on Euro strength.

Silver priced in Dollars followed a similar pattern to gold, and fell as much as $0.27 to $17.28 before it also climbed back higher in the last several hours of trade and ended at its session high of $17.79 with a gain of 1.4%.

Platinum gained $20.50 to $1363.50 an ounce. Copper gained over 10 cents to $3.03.

Gold Mining and silver equities saw slight losses at the US open before they rallied back higher for most of the rest of trade.

Seeing about 3% gains by mid-afternoon, they fell back off in late trade and ended near unchanged on late weakness in the major indices that dragged everything lower.

Oil prices rose after the Energy Information Administration reported that US crude inventories built just 1.3 million barrels last week, but gasoline inventories fell a larger then expected 2.3 million barrels, and distillates fell 800,000 barrels.

The US Dollar index turned markedly lower as the Euro climbed over $1.50 and Sterling rose after Bank of England meeting minutes showed UK officials didn't want to expand the £175 billion Quantitative Easing program at October's vote.

Treasuries fell as the Dow, Nasdaq, and S&P rose for most of the day on mostly better than expected earnings reports from several banks, but the major indices then fell back off in late trade and ended with notable losses after a "sell" note on Wells Fargo was circulated by Dick Bove of Rochdale Securities.

The Federal Reserve's Beige Book of economic analysis meantime saw some improvements in housing and manufacturing activity, but from very low levels of activity.

Twenty-three US states have already reported rising unemployment for Sept. Yesterday the White House said it plans to cap and cut salaries paid at companies in receipt of emergency government finance.

Thursday at 08:30 EST brings Initial US Jobless Claims for last week, expected at 517,000, and then at 10:00 comes the Leading Economic Indicators for September, expected at 0.9%.

The FHFA Housing Price Index for August is expected 0.3% higher.

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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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