Gold News

Gold Unchanged as Dollar Bounces, Stocks Fall

From Chris Mullen at GoldSeek.com...

Gold Prices ended Thursday unchanged in New York after rising to $953.30 in Asia and then falling as low as $940.20 shortly after economic data gave the US Dollar a surprise bounce.

Fourth-quarter GDP growth in the United States was reported 0.6% higher year-on-year, but new jobless claims were lower than forecast.

Friday brings Personal Income for February expected at 0.3%, Personal Spending expected at 0.1%, and Core PCE Inflation expected at 0.1%. At 15:00 GMT comes Michigan Sentiment for March, expected at 70.0.

The US Dollar index rose Thursday and Treasury bonds fell, with those moves continuing after the first auction of the Federal Reserve's new $75 billion Term Securities Lending Facility apparently showed that banks were not in dire need of funding.

The Dow, Nasdaq, and S&P traded mostly lower despite the economic data and TSLF auction as concerns over more financial writedowns and a poor I.T. spending outlook from Oracle kept investors worried.

Silver fell on Thursday as low as $17.927 in early New York trade, but it then rallied higher for the rest of the day and ended at its high of the session with a gain of 0.93%.

The Gold Price in Euros fell to about €601, platinum gained $46 to $2036, and copper gained over 15 cents to about $3.90.

Gold and silver equities fell over 1% about an hour into trade before they rallied back near unchanged by mid-afternoon, but they then fell back off with the major indices in the last hour of trade and ended with over 1% losses.

Crude oil rose over $1 after pipeline attacks in Iraq raised supply concerns.

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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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