Gold Ends the Week 3.2% Higher as Stocks Slump; US Import Prices Surge

From Chris Mullen at GoldSeek.com...

Gold Prices on Friday remained near unchanged in Asia before rising as high as $837.20 in London.

The Gold Market then dropped back, dipping to $826.65 in early New York trade, but it then moved back higher into the US close and ended with a loss of just 0.37% for the day.

For the week, Gold Priced in Dollars added 3.2% – its 11th gain in the last 12 weeks – while the Nasdaq index of tech stocks dropped 6.5%. The broader S&P 500 lost 3.7%.

On the economic front, US exports rose strongly in Sept., said the Dept. of Labor on Friday, squeezing the overall trade deficit to $56.5 billion from the $58.5bn forecast by analysts.

But import prices rose strongly in Oct. new data showed, up 1.8% from the month before. The Michigan Sentiment index for this month dropped to 75 from Oct.'s reading of 80.9.

US Treasury bond prices rose on the short-end, anticipating further Fed rate cuts, while the yield on the 10-year fell to its lowest in over two years. The US Dollar index dropped all the way to under 75 on Friday – a new record low - on credit worries and the weak US economic outlook.

Silver rose to as high as $15.625 early Friday, but it also dipped before rallying to close the week 6.5% higher.

Gold Priced in Euros remained near 18-month highs at €567, platinum lost $33 on Friday to $1427, palladium lost $3 to $369, and copper fell nearly 7 cents to about $3.20.

Gold and silver equities mining fell over 2% by late morning before they rebounded in afternoon trade, but they still ended with about 1.5% losses.

Crude oil rose into the end of the week as traders looked at tight supplies in the face of rising political tensions in Pakistan.

Next week will be busy for economic releases, with Pending US Home Sales and the Treasury Budget on Tuesday; Retail Sales, Producer Price Inflation and Business Inventories on Wednesday; Consumer Price Inflation, Initial Jobless Claims, the New York Empire State Index and the Philadelphia Fed survey on Thursday.

Friday brings Net Foreign Purchases of US assets, plus Industrial Production and Capacity Utilization.

To Buy Gold Online Today, enjoying direct access to the professional Gold Market and storing your personal gold bullion in Zurich, New York or London from just $4 per month – with full insurance included – click through and register with BullionVault now...