Gold News

Gold Slips on US Data Ahead of Fed Rate-Cut

From Chris Mullen at

Gold Prices fell in late Asian trade on Tuesday before rallying to a new record high at $933.25 in London.

The Gold Market then fell to a session low of $919.75 by about 10:00 in New York as the US Dollar bounced and Treasury bonds fell on news that US Durable Goods Orders for Dec. came in much better than expected.

US consumer confidence for this month also beat forecasts, leading some analysts to speculate that the Federal Reserve may cut rates by only 25 basis points on Wednesday instead of the widely expected 0.5% cut.

But the Gold Price then came back into the close, ending with a loss of only 0.23% for the day.

The Dow, Nasdaq, and S&P traded mostly higher on optimism over more cheap money to come, while crude oil climbed above $91 in late trade ahead of Wednesday's inventory reports and the agreed stimulus plan from the US Congress, which many hope will help strengthen demand.

Silver fell to $16.50 by late trade in Asia before it rallied to a new 27-year intraday high at $16.81 in London. It also slipped and then rallied, finishing with a gain of 0.36% at new quarter-century closing high.

The Gold Price in Euros fell to about €626 per ounce – little changed for the day – while platinum lost $15 to $1706, palladium gained $5 to $390, and copper gained nearly 7 cents to about $3.29.

Gold and silver mining equities traded on either side of unchanged in morning trade, but they then fell off slightly and ended with nearly 1% losses.

Tomorrow at 08:30 EST brings the advanced reading for US fourth-quarter GDP growth, expected at 1.2%, plus the Chain Deflator expected at 2.6%.

At 14:15 is the much-anticipated Fed Open Market Committee Policy Statement.

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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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