Gold Rises, Silver Jumps 11% in Four Days

0

Gold gained for the third straight day on Wednesday while silver continued to jump higher for the forth consecutive day. Platinum climbed as well. In other markets, the U.S. dollar gained against other world currencies, U.S. stocks rallied, and crude-oil roared to a six-month high.

Bullion update ...In New York trading futures for bullion on Thursday:

  • Silver for July delivery surged another 29 cents, or 2.2 percent, to $13.71 an ounce. The metal has soared $1.39, or 11.2 percent since Thursday.

  • Gold for June climbed $6.70, or 0.7 percent, to $911.00 an ounce.

  • July platinum rose $5.20 or 0.5 percent, to $1,143.10 an ounce.

 

"Gold has caught a whiff of a broad-based commodity rally on the back of today’s better-than-expected ADP report," Ralph Preston, a commodity analyst at Heritage West Futures Inc. in San Diego, was quoted on Bloomberg. "However, trend forces are neutral and gold bulls are being held in the coral as they are unable to overcome $915 resistance in today’s trade."

 

A report from payroll services firm Automatic Data Processing, Inc. (ADP) said U.S. companies cut 491,000 jobs during April, which was the fewest since October and a hint that the economic slowdown may be easing.

In spot bullion, the benchmark London gold fix price remained unchanged at $910.00 an ounce. Silver jumped 33 cents to $13.44 an ounce. Platinum was fixed $1.00 higher to $1,136.00.

Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

Oil and gasoline prices

Crude-oil futures soared to a six-month high Wednesday following the weekly Energy Information Administration report that showed crude inventories climbed less than expected and gasoline inventories declined. With that, oil for June delivery jumped $2.50, or 4.6 percent, to $56.34 a barrel.

Prices at the pump continue to rise sharply. The average price for unleaded gasoline rose 3.1 cents to $2.11 a gallon, according to AAA. The price is 6 cents higher than a week ago.

U.S. Stocks

Stocks were also helped by the ADP data, according to reports. The Dow Jones industrial average rose 101.63 points, or 1.21 percent, to 8,512.28. The S&P 500 Index gained 15.73 points, or 1.74 percent, to 919.53. The Nasdaq Composite Index climbed 4.98 points, or 0.28 percent, to 1,759.10.

Check out additional market resources at Live Bullion Spots, the Silver Coin Melt Calculator, U.S. Mint Collector Bullion Price Guide, and the Inflation Calculator.

Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments