GOLD PRICE NEWS – The gold price remained in consolidation mode on Wednesday amid a relatively quiet morning for the financial markets. The spot price of gold once again held in a narrow range in overnight trading – between $1,718 and $1,729 per ounce – amid relatively low volumes ahead of tomorrow’s Thanksgiving holiday in the United States.
Gold prices held steady alongside the U.S. Dollar Index, which held near unchanged at 80.961 against a composite of foreign currencies. The stability in the currency markets came despite news that euro zone officials failed to come to an agreement with the International Monetary Fund (IMF) regarding a debt-reduction program for Greece.
Jean-Claude Juncker, president of the Euro Group, noted in a statement that the meeting “made progress in identifying a consistent package of credible initiatives aimed at making a further substantial contribution to the sustainability of Greek government debt.” However, Juncker added that “further technical work on some elements of this package” is necessary.
(For more analysis of the impact of the euro sovereign debt crisis on gold prices, check out GoldAlert Pro at http://pro.goldalert.com)
The inability to secure a deal leaves the next Greek financial aid payment, which has been postponed since June, in limbo. Nonetheless, European policymakers agreed to hold another “emergency” meeting next Monday.
Silver oscillated between gains and losses in conjunction with the gold price on Wednesday, as it stabilized near unchanged at $33.16 per ounce. In contrast to the precious metals, most gold and silver stocks turned higher. The Philadelphia Gold & Silver Index (XAU) opened fractionally lower but quickly reversed course to the upside and was higher by 1.3% at 171.20 in late morning trading.
A few of the better performing large-cap gold and silver stocks were Coeur d’Alene Mines (CDE), Eldorado Gold (EGO), and IAMGOLD (IAG). Shares of CDE climbed by 1.6% to $23.65, EGO by 3.3% to $15.23, and IAG by 2.4% to $12.03.
In the U.S., the latest batch of economic data had a minimal effect on both the gold price and broader markets this morning. Weekly jobless claims came in at 410,000, in-line with the consensus estimate among economists. On the positive side, the Leading Indicators report for October rose by 0.2%, above the 0.1% gain the markets were anticipating. Alternatively, the University of Michigan Consumer Sentiment Index fell from 84.9 in October to 82.7 in November – well below the 84.5 level economists were expecting.
Follow us on LinkedIn