Gold News

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

From Chris Mullen at

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.

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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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