Gold News

Gold Adds 2% for the Week as Stocks, Silver & Mining Shares Fall

From Chris Mullen at GoldSeek.com...


Gold Prices
traded roughly $5 higher in Asia and London on Friday, rising as high as $770.15 by early trade in New York.

The Gold Market then fell over 1% in midmorning US trade, dipping to $760.10 by late morning in Manhattan before rallying into the close and ending the day with a loss of just 0.04%.

For the week, the spot Gold Price gained more tha 2%, while silver dropped by the same amount. US gold and silver mining stocks also fell for the week, losing nearly 3% of their value.

The broaders Dow, Nasdaq, and S&P equity indices all celebrated the 20th anniversary of 1987's "Black Monday" crash in style, falling more than 2.5% on Friday's poor earnings reports, concerns over declining profits, weak economic growth, and worries over the credit market.


Gold Priced in Euros
held above €535 per ounce, a 17-month weekly high, while platinum gained $3 on Friday to $1441 – a new record high – and palladium lost $3 to $366. Copper prices gained a couple of cents to about $3.61.

There were no major economic reports on Friday. The coming week brings US Existing Home Sales on Wednesday, Durable Goods Orders, Initial Jobless Claims, and New Home Sales on Thursday, plus the Michigan Sentiment index on Friday.

Oil briefly topped $90 to a new record high overnight before profit taking took over in New York and brought it back under $89, but it still ended with an impressive gain of 5.9% for the week.

The US Dollar index fell to a new record low, and Treasury bonds rose yet again. That pushed the yield on the two-year note to a 2-year low on increasing confidence that the Fed will cut interest rates at their Halloween meeting.

All eyes at the weekend were on the G7 meeting of finance leaders in Washington, and whether or not they would address the record low Dollar that only continues to weaken.

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Adrian Ash is director of research at BullionVault, the physical gold and silver 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 is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected finance publications.

See the full archive of Adrian Ash articles on GoldNews.

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