Gold News

Gold Ends the Week 3.4% Higher at New Record Highs vs. Dollar & Euro as Stock Markets Sell-off Again

From Chris Mullen at GoldSeek.com...

Gold Prices rose to a new intra-day record high on Friday at $923.60 per ounce in London before falling to find a brief loss at $905.75 early afternoon in New York.

The Gold Market then rallied back higher into the close and ended with a gain of 0.39% at a new record closing high, some 3.4% higher for the week.

The Gold Price in Euros also ended the session at a new all-time record high of €621 per ounce.

Silver rose to $16.59 and fell to $16.292 before it also rallied back higher into the close and ended with a gain of 0.98% at a new 27-year closing high.

Platinum gained $66 or 4.11% to $1672 to a new record high, palladium gained $10 to $380, and copper rose a couple of cents to about $3.22.

Gold and silver equities rose over 2% at the open, but they then steadily sold off as gold came off its early record highs and the broader indices fell. The miners closed with slight losses for the day, but finished around 5% higher for the week.

Oil meantime rose over a dollar on Friday on expectations the US government's stimulus plan will help the economy and increase energy demand.

The US Dollar index also rose on the outlook that the Fed will not be as aggressive in cutting interest rates when it meets next Tuesday (Jan. 30th) as previously thought after its extra-ordinary 0.75% cut this week.

Treasury bonds eventually rose, however, as the Dow, Nasdaq, and S&P stock-market indices all fell more than 1% by the close on worries over more writedowns and other bad news related to problems in the credit market.

"Gold & silver recovered quickly and sit poised for more action next week, " says Julian D.W. Phillips of the GoldForecaster.com.

"Will the Fed cut rates again on Jan. 30th? Will the Dollar tumble? Will the Fed confirm they have accepted inflation and are happy to see a weaker currency? Brace yourself for next week’s action."

There were no major economic reports on Friday. Next week's highlights include New US Home Sales on Monday, Durable Goods Orders and Consumer Confidence on Tuesday, ADP Employment, GDP, the Chain Deflator, and the FOMC policy Statement on Wednesday, the Employment Cost Index, Personal Income and Spending, Core PCE Inflation, Initial Jobless Claims, and Chicago PMI on Thursday, and January’s jobs data, Construction Spending, the ISM Index, and Michigan Sentiment on Friday.

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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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