Gold News

Gold Bounces to End Thurs 1.2% Lower as Crude Jumps, Stocks Retreat

From Chris Mullen at GoldSeek.com...

Gold
and silver fell throughout most of trade in Asia and London on Thursday
and dropped as low as $857.05 and $16.22 respectively just before 09:00
in New York.

Both metals then rallied back higher into the close and ended well off those lows. Gold still ended with a loss of 1.23%, however.

Silver prices shed 2.23%.

The Gold Price in Euros fell to a five-week low before ending unchanged
at €564 per ounce. Platinum lost $22 to $2015.50, and copper fell over
4 cents to about $3.53.

Gold and silver equities fell about 3% by late morning in the US before
they rebounded to see only about 1.5% losses by mid-afternoon. Gold
mining stocks then fell back off in the last couple of hours of trade
and ended with over 2% losses after the major indices erased much of
their early gains.

The US Dollar index rose and Treasury bonds fell after
better-than-expected Retail Sales data. The Dow, Nasdaq, and S&P
rose over 1% in morning trade on that economic optimism, too. But a
late rebound in oil prices took the indices well off their highs to end
with only modest gains.

Crude oil had fallen almost $5 at one point on Dollar strength, but it
then rallied back to find a slight gain by the close on talks of a
strike in Nigeria and some refinery outages in the US.

Import price inflation slowed last month from April, according to the
Bureau of Labor Statistics, but still recorded a 17.8% year-on-year
pace.

Last week's new jobless claims came in higher than expected.

Friday at 13:30 GMT brings US consumer-price data for May, expected at
0.5% month-on-month with Core CPI forecast at the usual 0.2%.

At 15:00 GMT comes Michigan Sentiment for June, expected at 59.5.

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Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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