Gold News

Gold Adds 5%, Miners Up 10%, as Wall Street Slips for 1st Week in 7

From Chris Mullen at GoldSeek.com...

The Gold Price rose $7.90 to $913.00 in late Asian trade on Friday, gaining on news that China has increased its gold reserves by 76% to 1,054 tonnes since 2003.

The price of Gold Bullion then slipped back off in London and early New York trade, but shot higher in the last two and a half hours of trade and ended near its new session high of $913.50 with a gain of 0.8% for the day.

For the week, Gold Prices rose 5.3% in US Dollars. The Gold Price in Euros rose 3.5% from last week's finish at €666 an ounce.

Oil climbed back above $51, the US Dollar index and Treasury bonds fell markedly, and the Dow, Nasdaq, and S&P rose about 2% on better than expected earnings and economic reports.

For the week, the S&P500 slipped 0.4% however, its first drop since late February.

Silver meanwhile climbed $0.15 to $12.90 in late Asian trade Friday, also dropping in London before jumping in New York to end 1.1% higher for the day and 9.0% better for the week.

Platinum lost $2 to $1173.50 on Friday, and copper gained nearly 6 cents to about $2.05.

Gold Mining and silver equities climbed higher throughout the day and ended with about 6% gains, up 9.3% on the XAU index and 13% better on the HUI.

On the economic front, new US orders for Durable Goods fell less than expected in March, while sales of New Homes were stronger.

The Federal Reserve also reported that the largest 19 US banks need to hold a "substantial" amount of capital above regulatory requirements if they are to survive any weakening of the recession.

The central bank's so-called "stress tests", conducted at major banks, are aimed at ensuring enough capital is held to continue lending in potentially bleaker conditions.

Results will be published May 4th.

Next week’s economic highlights include Consumer Confidence and the S&P/CaseShiller Home Price Index on Tuesday, GDP and a FOMC Rate Decision on Wednesday, Initial Jobless Claims, Personal Income and Spending, the Employment Cost Index, and Chicago PMI on Thursday, and Michigan Sentiment, Factory Orders, and the ISM Index on Friday.

Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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