Gold News

Gold Drops 2% on Thurs as Dollar Bounces Despite Weak Data

From Chris Mullen at

Gold Prices briefly rose to $906.95 at the New York open on Thursday, but then sold off for most of the rest of trade and ended $5 off their low of $882.70 for a loss of 2.03%.

Durable good orders and new US home sales both came in below analyst forecasts for March. But crude oil and Treasury bonds fell as the US Dollar index rose on speculation that the Federal Reserve may be close to halting its recent slew of interest rate cuts.

The Euro fell to a near three-week low on a shock drop in Germany's Ifo business confidence report, dampening expectations of higher Eurozone rates ahead. A cut of 0.25% is still expected at the US Fed’s meeting next week, but many are looking for language in the accompanying statement that signals steady or even rising Dollar interest rates going forward.

Silver rose Thursday to $17.19 before falling to $16.62 and closing with a loss of 2.85%.

The Gold Price in Euros touched a low of €567, platinum lost $33.50 to $1962.50, and copper fell over 5 cents to about $3.90.

Gold and silver equities steadily fell for most of trade and ended with about 4% losses.

The Dow, Nasdaq, and S&P all rose on news of a bigger than expected drop in jobless claims and a surprise profit from Ford, the auto-maker.

Friday at 15:00 GMT brings the US Michigan Sentiment indicator for April, expected to show a drop from 69.5 to 63.5.

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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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