Gold News

Gold Ends Weds 0.9% Higher in Volatile Trade; Gold-Mining Stocks Drop as S&P Falls, Dollar Sinks, Bonds Rise Again

From Chris Mullen at

Gold Prices
rose in Asian trade overnight Tuesday and continued to gain early Wednesday to find more than 2% gains as high as $807.25 at one point.

But the Gold Market then fell back off in London and New York, ending with a gain of just 0.91%.

Silver rose as high as $14.81 before it also fell back off and ended with a loss of 0.35%.

(Both metals went on to see nearly 0.5% gains in Wednesday’s after hours access session; US markets are closed Thursday for Thanksgiving.)

Gold Priced in Euros
rose above €538, platinum lost $2 to $1461, palladium lost $4 to $354, and copper fell nearly 10 cents to about $2.94.

Gold and silver mining equities fell about 3% in morning US trade as the metals came off their overnight highs and the major indices saw notable losses as well, but they then rallied back higher into the close and ended with only about 1.5% losses despite the fact that the Dow fell off to new recent lows at the end of the day.

On the economic front, initial jobless claims for last week were bang on forecasts at 330,000. Leading Indicators dropped 0.5% vs. the 0.3% expected, but the Michigan Sentiment Index came in slightly higher than forecast. There are now no major US economic reports for the rest of the week.

Crude oil rose as high as $99.29 in electronic trade overnight before it dipped to find slight losses ahead of today’s inventory reports. They initially sent oil back higher on the day, but it soon fell off and closed marginally lower, because – while US stockpiles did fall in most areas, they built at the key Cushing, Oklahoma refinery, and that was seen as a bearish sign for the market.

Crude inventories fell 1.1 million barrels overall, gasoline inventories rose 200,000 barrels, distillates fell 2.4 million barrels, refinery utilization fell 0.7% to 87.0%, and natural gas inventories built by 4 billion cubic feet.

The US Dollar index fell to a new record closing low and Treasuries rose yet again on worries about the economy. The yield on the 10-year note briefly fell under 4.00% for the first time since July 2005.

The Dow, Nasdaq, and S&P opened weak on continued concern about the credit market and a sharp fall in Asian and European stocks, plus hidden derivative losses that have yet to evidence themselves. All three indices attempted to rally back several times throughout the session, and the Nasdaq saw a small gain late in the day. But all three indices fell back off markedly in the last hour of trade and ended at or near new session lows with well over 1% losses.

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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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