Gold News

Gold Ends Thurs 1.2% Higher as Dollar Slips on Weak US Growth, Five-Year Record in Jobless Claims

From Chris Mullen at

Gold held onto Wednesday's late gains in Asia and London on Thursday before spiking at the New York open to as high as $925.40 per ounce on news that Initial US Jobless Claims surged to their highest level in five years.

Gold then fell back off over $10 into the close, but it still ended with a gain of 1.19%.

Silver rose to as high as $17.897 before it also fell back off into the close, but it still ended with a gain of 2.02%.

The Gold Price in Euros rose to about €586, platinum gained $24.50 to $1750.50, and copper gained over 3 cents to about $3.71.

Gold miners and silver equities rose roughly 2% at the open, but they then steadily fell back off for the rest of trade and ended mixed and near unchanged.

The US Dollar index fell and Treasury bonds rose after US economic data came in mostly worse than expected. GDP growth for the second quarter was slower than analysts forecast at 1.9% annualized. Employment costs rose by 0.7% once again.

Crude oil prices fell on concerns that weak economic data portends further demand destruction, and that then helped the Dollar end well off its earlier lows with only a slight loss for Thursday's session.

The Dow and S&P fell over 1% on worries raised over poor economic data, but the Nasdaq ended just slightly lower on news that Bristol-Myers Squibb was bidding for ImClone Systems.

Friday at 13:30 GMT brings July’s jobs data. Nonfarm payrolls are expected at -75,000, the Unemployment Rate is expected at 5.6%, Hourly Earnings are expected at 0.3%, and the Average Workweek is expected at 33.7.

Then at 15:00 GMT comes Construction Spending for June, expected at -0.3%, plus the ISM Index for July – expected at 49.2.

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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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