Gold Slips 0.8% on Weds as Dollar Rallies, Euro & Stocks Fall - Thursday 8th May 2008
From Chris Mullen at GoldSeek.com...
Gold rose to $878.60 in Asia on Wednesday before falling over 1% to as low as $863.55 by late morning in New York.
The Gold Market then rallied back higher into the close to end with a loss of 0.78%.
The US Dollar index rose after Kansas City Federal Reserve President Thomas Hoenig cited inflation as his main worry, while US Productivity came in higher than expected.
European economic data also came in weaker than expected and weakened the Euro ahead of Thursday's Bank of England and ECB meetings. Both are expected to keep rates unchanged, but the weak numbers did spark speculation that the BoE may now be influenced to lower rates while the ECB may voice a less hawkish than previously expected tone.
Silver rose Wednesday to $16.89 before falling to $16.45 per ounce. It also then rallied back higher into the close and ended over 1% off its low with a loss of just 1.1%.
The Gold Price in Euros rose to about €565, platinum gained $3 to $1956, and copper fell nearly 5 cents to about $3.86.
Gold and silver equities fell nearly 2% at the open before they rallied back near unchanged by early afternoon, but they then fell back off along with the major indices in the last couple of hours of trade and ended with a little over 1% losses.
On the economic front, US productivity for the first 3 months of 2008 grew by 2.2%, ahead of expectations. Pending Home Sales fell 1% in March as forecast. Consumer Credit surged by $15.3 billion from Feb.'s $6.5bn growth.
Thursday at 13:30 GMT brings Initial Jobless Claims for 5/03 – expected at 375,000 – and at 15:00 is the Wholesale Inventories report for March, expected at 0.5%.
Oil ignored the higher Dollar and a bearish inventory report as concentration remained on supply threats in Nigeria, Iran, and Iraq. Possible strikes in France and Russia – plus declining output in Mexico – also contributed to oil's new record high of $123.80 per barrel.
US crude inventories built a much bigger than expected 5.7 million barrels, gasoline inventories built 800,000 barrels, distillates fell 100,000 barrels, and refinery utilization fell 0.4% to 85.0%.
Treasury bonds fell in early trade but rose to find decent gains by the close as the Dow, Nasdaq, and S&P eventually fell markedly after Pending Home Sales fell to a new low and oil climbed to that new record high.
A new measure introduced late in the day from SEC Chairman Cox requiring more transparency over liquidity and capital requirements also helped accelerate the late sell off.
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Gold rose to $878.60 in Asia on Wednesday before falling over 1% to as low as $863.55 by late morning in New York.
The Gold Market then rallied back higher into the close to end with a loss of 0.78%.
The US Dollar index rose after Kansas City Federal Reserve President Thomas Hoenig cited inflation as his main worry, while US Productivity came in higher than expected.
European economic data also came in weaker than expected and weakened the Euro ahead of Thursday's Bank of England and ECB meetings. Both are expected to keep rates unchanged, but the weak numbers did spark speculation that the BoE may now be influenced to lower rates while the ECB may voice a less hawkish than previously expected tone.
Silver rose Wednesday to $16.89 before falling to $16.45 per ounce. It also then rallied back higher into the close and ended over 1% off its low with a loss of just 1.1%.
The Gold Price in Euros rose to about €565, platinum gained $3 to $1956, and copper fell nearly 5 cents to about $3.86.
Gold and silver equities fell nearly 2% at the open before they rallied back near unchanged by early afternoon, but they then fell back off along with the major indices in the last couple of hours of trade and ended with a little over 1% losses.
On the economic front, US productivity for the first 3 months of 2008 grew by 2.2%, ahead of expectations. Pending Home Sales fell 1% in March as forecast. Consumer Credit surged by $15.3 billion from Feb.'s $6.5bn growth.
Thursday at 13:30 GMT brings Initial Jobless Claims for 5/03 – expected at 375,000 – and at 15:00 is the Wholesale Inventories report for March, expected at 0.5%.
Oil ignored the higher Dollar and a bearish inventory report as concentration remained on supply threats in Nigeria, Iran, and Iraq. Possible strikes in France and Russia – plus declining output in Mexico – also contributed to oil's new record high of $123.80 per barrel.
US crude inventories built a much bigger than expected 5.7 million barrels, gasoline inventories built 800,000 barrels, distillates fell 100,000 barrels, and refinery utilization fell 0.4% to 85.0%.
Treasury bonds fell in early trade but rose to find decent gains by the close as the Dow, Nasdaq, and S&P eventually fell markedly after Pending Home Sales fell to a new low and oil climbed to that new record high.
A new measure introduced late in the day from SEC Chairman Cox requiring more transparency over liquidity and capital requirements also helped accelerate the late sell off.
Researching your first Gold Investment today? Don't pay more than you should! Make it cheap, simple & ultra-secure at BullionVault...
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