Gold News

Gold Gains 1.5% as Poor US Data Hurts Dollar, Stocks

From Chris Mullen at

Gold Prices fell to $934.37 by late trade in Asia on Wednesday before rising as high as $951.80 by the London close.

The Gold Market then fell back off slightly in afternoon US trade, but it still ended near that session high with a respectable gain of 1.5%.

Silver fell to $17.64 by late trade in Asia, but it then rose to as high as $18.33 by late trade in New York and closed near that high with a gain of 3%.

The US Dollar index fell as the poor economic data made it more likely the Fed will continue to cut interest rates, and a strong German business sentiment survey made it more likely that the European Central Bank will not lower interest rates as many have been looking for.

Treasuries rose on the short end on poor economic data and on a $28 billion 2-year note auction that came off at a yield of 1.761%, but longer dated bonds fell as investors shunned the idea of loaning the government money for such a long time at current low yields.

The Dow, Nasdaq, and S&P fell around 0.8% on fresh recession worries, while the Gold Price in Euros rose to €602 per ounce, platinum gained $30 to $1990, and copper gained roughly 5 cents to about $3.75.

Gold and silver equities rose over 1% at the open and remained at about that level in morning trade before dipped slightly in early afternoon trade, but they then rallied back higher into the close and ended with about 2% gains.

On the economic front, New US Home Sales for Feb. were reported at a 13-year low, but they did come in slightly higher than expected and somewhat offset the much worse than expected Durable Goods data – down 1.7% against 0.8% growth expected.

Also making economic news were comments from US Treasury secretary Hank Paulson, who cautioned that the Fed’s recent policy of opening the discount window to investment banks may not necessarily be permanent and instead sets a precedent only for unusual periods of turmoil.

Oil rose over 4% on a weaker Dollar, a 24-hour strike in France, and poorer than expected inventory reports. US crude inventories were reported to be unchanged, while gasoline inventories fell 3.3 million barrels, distillates fell 2.2 million barrels, and refinery runs fell 1.6% to 82.2%.

Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce – plus secure, professional storage in Zurich, Switzerland for just 0.12% per year – click through to BullionVault now...

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.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals