Gold Drops 2% as Crude Sinks, Stocks Bounce Ahead of Fed "No Change" Decision - Wednesday 30th April 2008
From Chris Mullen at GoldSeek.com...
Gold Prices sank throughout most of London and New York trade on Tuesday, ending near their low of $871.45 with a loss of 2.04%.
Crude oil fell 2.6% as a strike ended in the UK and the EIA reported that demand for February fell much more than the expected 2% at 7%.
The US Dollar index rose on anticipation the Fed will surprise the market and not cut interest rates today.
Treasury bonds rose, however, on poor economic data that dragged the Dow, Nasdaq, and S&P lower for most of trade. But stock losses again pared to minimal by the close and the Nasdaq eked out a small gain in a repeat of Tuesday’s performance.
Silver fell to $16.44 by about 09:00 EST in New York, but it then rallied nearly 1% from its low to end with a loss of 2.64%.
The Gold Price in Euros fell below €560, platinum lost $42.50 to $1922, and copper fell a few cents to about $3.90.
Gold and silver equities fell throughout most of trade and ended with over 4% losses.
US Consumer Confidence came in slightly better than expected for April, but much below March. Also making economic news was the Case-Shiller survey that said US home prices fell 12.7% in February while foreclosures were also reported to have risen for the seventh straight quarter.
Wednesday at 08:15 EST is the ADP Employment report expected at -60,000. Then comes first quarter GDP expected at 0.5%, the Chain Deflator expected at 3.0%, and the Employment Cost Index expected at 0.8%.
The Chicago Purchasing Managers Index for April is then due, followed by the Federal Reserve's interest-rate decision and policy statement at 18:15 GMT.
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Gold Prices sank throughout most of London and New York trade on Tuesday, ending near their low of $871.45 with a loss of 2.04%.
Crude oil fell 2.6% as a strike ended in the UK and the EIA reported that demand for February fell much more than the expected 2% at 7%.
The US Dollar index rose on anticipation the Fed will surprise the market and not cut interest rates today.
Treasury bonds rose, however, on poor economic data that dragged the Dow, Nasdaq, and S&P lower for most of trade. But stock losses again pared to minimal by the close and the Nasdaq eked out a small gain in a repeat of Tuesday’s performance.
Silver fell to $16.44 by about 09:00 EST in New York, but it then rallied nearly 1% from its low to end with a loss of 2.64%.
The Gold Price in Euros fell below €560, platinum lost $42.50 to $1922, and copper fell a few cents to about $3.90.
Gold and silver equities fell throughout most of trade and ended with over 4% losses.
US Consumer Confidence came in slightly better than expected for April, but much below March. Also making economic news was the Case-Shiller survey that said US home prices fell 12.7% in February while foreclosures were also reported to have risen for the seventh straight quarter.
Wednesday at 08:15 EST is the ADP Employment report expected at -60,000. Then comes first quarter GDP expected at 0.5%, the Chain Deflator expected at 3.0%, and the Employment Cost Index expected at 0.8%.
The Chicago Purchasing Managers Index for April is then due, followed by the Federal Reserve's interest-rate decision and policy statement at 18:15 GMT.
Looking to Buy Gold today? Make it simple, cheap and ultra-secure at BullionVault now...
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