Gold News

Gold Ends Weds 0.5% Lower as US Stocks Surge from 300-Point Loss, Treasury Bonds Fall

From Chris Mullen at GoldSeek.com...

Gold Prices remained near unchanged in Asia and London on Wednesday before dipping to $876.85 in early New York trade and then spiking as high as $895.65 by about 10:15.

But the Gold Market then fell back off into the close and ended with a loss of 0.56% for the day, while silver fell to end with a loss of 1.37%. (At the time of writing both metals have roughly erased the day’s losses in after hours access trade.)

On the stock market the Dow fell over 300 points by early afternoon and the Nasdaq and S&P saw notable losses as well, but all three indices then rallied back higher in the last two hours of trade and ended with nice gains on hopes for a rescue of some sort of the mortgage companies.

Treasuries rose markedly in early trade as the yield on the 10-year fell all the way to 3.281% – a new four-and-a-half year low. But gains were more than cut in half by the close as stocks rebounded in late trade and pulled money out of bonds.

The US Dollar index ended slightly lower as traders debated future action from the fed and European Central Banks. Crude oil fell to as low $86.65 and closed over 2% lower at a 3 month low on fears that a recession will cut into demand.

The Gold Price in Euros slipped to €605 per ounce, platinum gained $2 to $1550, palladium lost $4 to $364, and copper fell over 10 cents to about $3.12.

Gold and silver mining equities fell over 6% by early afternoon before they rebounded into the close, but they still ended with over 2% losses.

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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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