Gold Ends Thurs 1.2% Higher Even as Oil Slumps, Gold Mining Stocks Fall
From Chris Mullen at GoldSeek.com...
Gold Prices fell nearly $5 per ounce to $886.45 by midday in London on Thursday, but then spiked over $20 higher as New York opened and made a 10-session high of $908.25.
Gold then fell back off slightly into the close but ended with a gain of 1.22%.
The Gold Price in Euros rose to a three-week high of €585.
Crude oil meantime fell nearly $5 per barrel after China announced it will reduce its subsidies and effectively raise gas prices for its citizens by 17-18%.
This was a surprise move and is expected to reduce global demand growth. Saudi Arabia also announced plans for another 200,000 barrel per day increase in output.
The US Dollar index rose slightly and Treasuries fell while the Dow, Nasdaq, and S&P eventually rose after oil closed markedly lower.
But despite the bounce in the major indices, gold and silver equities rose roughly 2% by midmorning in New York before they then fell back off and ended nearly 1% lower from Wednesday.
Silver fell to $17.12 and rose to $17.722 before it closed with a gain of 0.75%.
Platinum lost $46 to $2042, and copper gained a few cents to about $3.78.
The Philadelphia Fed's monthly survey of US manufacturing activity fell yet again, making June the seventh month running of negative data. The percentage of firms reporting decreased activity was twice as large at 34% as the percentage reporting an increase.
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