Gold News

Gold ends Weds 0.5% higher as Dollar bounces; US housing slows again

From Chris Mullen at GoldSeek.com...

Spot Gold Prices traded in a range between $720-$725 in Asia, London, and New York on Wednesday before ending near the bottom of that range.

The Price of Gold still ended the session with a respectable gain of 0.8%, while silver traded around the $13.00 level for most of world trade before it also ended near its low of the session for a gain on Tuesday's finish of 1.25%.

The Price of Gold in Euros fell under €517, platinum gained $7 to $1,307, palladium gained $3 to $332, and copper gained over 13 cents to about $3.58.

Gold and silver equities rose over 2% in the first half hour of trade before they fell back off into the close, but they still ended with about 1% gains.

The US exchange-traded gold fund, which is also listed in Singapore, added more than 7 tonnes of gold bullion to its holdings in trust, taking the total to a fresh record of more than 575 tonnes. (To Buy Gold outright, rather than merely tracking the price via a trust arrangement that fails to give you ownership of gold bullion, visit BullionVault here...)

On the data front, the US inflation figures for Aug. showed a dip in consumer prices of 0.1% from July. New housing projects and building permits for last month both came in below the previous month's figures, and they also fell below Wall Street expectations.

Thursday at 13:30 GMT brings Initial US Jobless Claims for the week-ending last Friday, followed by Leading Indicators report and the Philadelphia Fed's survey of business conditions.

In the broader commodity markets on Weds, oil rose to a new record high above $82 before it fell back off in reaction to a mixed US inventory report. It still ended Weds with a gain of about 0.5%.

After getting slammed in reaction to the US Fed's decision to slash Dollar interest rates, the Dollar's Trade-Weighted Index fell as low as 79.09 overnight, but rebounded from new 15-year lows on hopes that those lower interest rates will help support the US economy.

Treasury bond prices fell as the Dow, Nasdaq, and S&P continued to advance.

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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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