Gold News

Gold Gains 0.6% on Thursday as Euro Slumps, Treasury Bonds Slide

From Chris Mullen at

Gold Prices rose to $910.85 by late trade in Asia and early trade in London on Thursday, before falling to $896.05 by about 09:00 in New York after the Bank of England cut its interest rates to 5.25% and the European Central Bank held rates steady at 4.0% as expected.

But dovish talk from ECB President Trichet then raised expectations that the Bank will eventually join the BoE and Fed in cutting rates, resulting in massive losses in the Euro, that in turn sent the US Dollar index noticeably higher.

The Gold Price in Euros rose to €627, and the US-Dollar Gold Market then rallied back higher for most of the rest of trade and ended with a gain of 0.66% for the day.

Silver fell to $16.45 before rallying into the close to end just 13 cents away from matching its latest 27-year high. Platinum gained $23 to $1834 to a new record high, palladium gained $3 to $420, and copper rose over 13 cents to about $3.43.

Gold and silver equities traded mixed and near unchanged for most of the day and closed with slight losses as the major indices struggled. The Dow remained mixed in morning trade before it rose over 130 points by the middle of the afternoon, but it then fell back off into the close and ended just slightly higher.

The Nasdaq and S&P followed similar patterns as traders digested mostly disappointing retail sales reports from Wal-Mart, Macy’s, and other retailers.

Oil eventually rose on cold weather forecasts and news of production halts in Nigeria and the North Sea.

US Treasury bonds dropped after a $9 billion 30-year bond auction saw weak demand but drew the lowest yield on record.

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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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