GN: Gold Ends Thurs 2.1% Lower as Dollar Rises Despite Shrinking US Economy - Friday 31st October 2008
Spot Gold rose 3.15% to $777.27 and silver rose 8.45% to $10.62 an ounce by late trade in Asia on Thursday, but both metals then fell back off in London and New York and ended near their lows of $734.25 and $9.552 with losses of 2.11% and 0.41% respectively.
The US third-quarter GDP report showed the economy contracting at the fastest pace since 2001, and consumer spending dropped the most in 28 years.
Price inflation in United States rose to 4.1% from a year earlier.
The Gold Price in Euros fell to about €571, platinum gained $15.50 to $822.50, and copper fell nearly 20 cents to about $1.89.
Gold and silver equities rose over 7% at the open before the fell to see over 4% losses midday, but they then rallied back higher into the close and ended with about 5% gains.
Oil prices fell on continued worries over the health and sustainability of world demand as the EIA reported that oil demand was down the most since 1980 for the January to August period.
The US Dollar index turned early losses into slight gains by the close, as GDP did not fall as much as expected, furthering the case that the US may not be as badly off as the rest of the world.
Treasuries fell as the Dow, Nasdaq, and S&P rose over 2% on the GDP report that was not as gloomy as expected.
Friday at 12:30 GMT brings the third quarter Employment Cost Index, expected at 0.7%, Personal Income for September expected at 0.1%, and Personal Spending expected at -0.2%.
Then comes the Chicago PMI for October, expected at 48.0 and at 10AM is Michigan Sentiment for October expected at 57.5.