Gold News

Gold Slips 0.4% on Weds on "Tame" US Inflation, Lower Crude Oil

From Chris Mullen at

Gold fell to $859.00 by late trade in Asia on Wednesday before it rose to find a slight gain at $870.85 early in New York.

The Gold Market then fell back off a bit in the last few hours of trade and ended with a loss of 0.4% for the session.

The Dow, Nasdaq, and S&P rose along with the US Dollar while Treasuries fell slightly despite what the press termed "tame" consumer price inflation data.

Core CPI – which strips out food and fuel costs – rose 0.1% in April from March, a slower rate than the 0.2% expected. Headline inflation for the year-to-April rose 3.9%.

Crude oil fell on decreasing demand reports after Tuesday’s record high of $126.98. An official from Iran also remarked that they will not be cutting exports and that eased some geopolitical tensions.

US crude inventories for the week-ending last Friday rose 200,000 barrels, gasoline inventories fell 1.7 million barrels, distillate inventories rose 1.4 million barrels, and refinery utilization rose 1.6% to 86.6%.

Thursday at 13:30 GMT brings Initial US Jobless claims for last week, expected at 370,000, and then the NY Empire State Index for March expected at 0.0.

Net Foreign Purchases of US securities during March will be reported at 14:15 GMT (forecast at $62.5 billion), followed by Capacity Utilization for April and Industrial Production – expected to show 0.3% shrinkage.

Silver fell to $16.54 and rose to $16.89 before it also fell back off and ended with a loss of 0.9%.

The Gold Price in Euros fell to about €560, platinum lost $18.50 to $2026, and copper fell over 5 cents to about $3.70. Gold and silver equities remained near unchanged for most of the day, but they then fell back off in the last couple hours of trade and ended nearly 2% lower.

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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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