The gold price
Gold Price Jumps as Crude Oil Breaks $120, Dollar & US Stocks Fall - 6 May 2008
With the London Gold Market closed for the UK's May Bank Holiday on Monday, Gold was choppy in Asia and then rose throughout the US session, ending near its early afternoon New York high of $873.20 with a gain 1.9% for the day.
Silver rose in similar fashion and ended near its midmorning New York high of $16.805 with a gain of 2.2%.
The Gold Price in Euros rose back above €561 Per Ounce, platinum gained $25.50 to $1918.50, and copper gained over 12 cents to about $3.98.
Oil prices shot to a new record intraday high at $120.36 on short covering as supply concerns and threats rose in Nigeria, Iraq, and Iran. Word of a possible strike in France later in the week also increased supply worries in the face of still relatively strong demand.
The US Dollar index fell in early trade on speculation over the European Central Bank meeting this Thursday. But it bounced higher after the ISM Services report came in better than expected, before falling back off to new lows as commodities of all kinds strongly reasserted their cases for ongoing bull markets.
Treasury bonds fell after that ISM Services data, but they rose back near unchanged by the close as the major indices fell. The gap between short-term & long-dated US bond yields widened further, raising the Relative Price of Long-Term Government Finance.
The Dow, Nasdaq, and S&P all fell as Microsoft withdrew its bid for Yahoo and speculation arose that Bank of America may withdraw its offer for Countrywide as suitors realize that the assets they originally bid for may not be worth all that much in an ongoing credit/financial crisis.
Gold and silver equities gained roughly 3% at the open and remained near their highs into the close.
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Adrian Ash runs the research desk at BullionVault, the physical gold and silver 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 is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern and FT Deutschland; Italy's Il Sole 24 Ore, and many other respected finance publications.
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