Gold News

Gold Gains as US Stocks Tumble on New Credit Fears, Record High Oil

From Chris Mullen at

Gold and silver remained near unchanged in Asia and rose to see over 1% gains by midday in London at as high as $889.50 and $17.07 before they fell back off in early New York trade and saw over 1% losses at as low as $870.95 and $16.48 by about 11AM EST.

The Gold Market then rallied back higher into the close and Gold ended with a gain of 0.47% while silver erased a nearly 2% decline and ended unchanged.

The Gold Price in Euros rose to about €573, platinum gained $67 to $2079, and copper fell nearly 7 cents to about $3.75.

Oil rose to a new record intraday high of $126.25 before it pulled back a bit, but it still made a new record closing high as supply threats remain while demand stays strong. New to supply concerns today was heightened worry about Venezuela’s exports as the WSJ ran a story about Chavez supporting rebels aiming at overthrowing Columbia’s government.

These actions could lead to sanctions from the US that may influence Chavez to cut off exports to the U.S. While that oil will still likely make its way to the U.S. anyway, it would do so through middlemen that would add a premium to the price.

The US Dollar index fell and treasuries rose on renewed worries over the financial sector as AIG raised credit market fears by posting a larger than expected $7.8 billion loss.

The Dow, Nasdaq, and S&P fell as oil set another new record high and worries reignited over the health of the financial system.

Gold and silver equities rose slightly at the open before they fell roughly 2% by midmorning, but they then rallied back higher into the close and ended with minimal losses.

After the US Trade Deficit for March came in smaller than expected, next week’s economic highlights include the Treasury Budget on Monday, Export and Import Prices, Retail Sales, and Business Inventories on Tuesday, CPI on Wednesday, Initial Jobless Claims, the NY Empire State Index, Net Foreign Purchases, Capacity Utilization, Industrial Production, and the Philadelphia Fed on Thursday, and Building Permits, Housing Starts, and Michigan Sentiment on Friday.

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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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