GOLD PRICE NEWS – The gold price rose modestly on Thursday amid weakness in the U.S. dollar and further gains in the commodities complex. The price of gold advanced by as much as $7.18, or 0.4%, to $1,726.68 per ounce, which helped the yellow metal recover approximately one third of yesterday’s sell-off on large volume. As for the SPDR Gold Trust (GLD), the world’s most liquid gold price proxy, it moved higher this morning by $0.58 to $167.13 per share. The U.S. Dollar Index (DXY) fell by 0.3% to 80.059, while the euro currency rose by 0.2% to 1.2981 against the greenback.
Silver outperformed the price of gold, jumping by $0.56, or 1.7%, to $34.30 per ounce. Among other precious metals, platinum futures added 0.6% to $1,621.30 per ounce and palladium tacked on 2.1% to $689.60 per ounce. As for cyclical commodities, copper futures rallied 2.2% to $3.61 per pound while crude oil climbed by 2.1% to $88.34 per barrel.
Gold stocks posted fractional gains in conjunction with the gold price, as the Market Vectors Gold Miners ETF (GDX) inched higher by 0.2% to $48.01 per share. Barrick Gold (ABX) and Goldcorp (GG) – the GDX’s two largest components – dipped by 0.1% and 0.9% to $34.79 and $39.28 per share, respectively. However, two large-cap gold stocks in the black were AngloGold Ashanti (AU) and Gold Fields (GFI) – which advanced by 2.6% to $31.44 and by 4.4% to $12.37 per share, respectively.
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The broader equity markets continued to move higher on Thursday, as the S&P 500 Index climbed by 0.7% to a three-week high of 1,419.70. The rally in U.S. equities was fueled in part by recent comments from U.S. House of Representatives Speaker John Boehner, who voiced optimism that Republicans could secure an agreement with the Obama administration to avoid going over the fiscal cliff – a $600 billion package of spending cuts and tax increases set to take effect at the start of 2013.
This morning, gold prices maintained their small gains following a mixed bag of U.S. economic data. While third quarter GDP growth was revised up from 2.0% to 2.7%, the figure was still below the 2.8% consensus estimate among economists. Weekly jobless claims also slightly missed expectations, coming in at 393,000 versus the 390,000 estimate. On the positive side, pending home sales rose by 5.2% in October, far above the 1.0% gain economists were expecting.
Although the price of gold rebounded on Thursday, it remains near the middle of the $1,700-$1,750 range that it has occupied over the past three weeks. In spite of yesterday’s sharp decline, analysts at UBS noted in a report that they noticed little in the way of reduced client demand for the yellow metal.
“We don’t think anything has materially changed for gold,” UBS wrote. “Essentially the metal is back to where it was trading last week. This is another test of downside buying interest but it also highlights the commitment issues that reside when the market attempts to climb higher.”
This article is contributed by Gold Alert and does not represent the views or opinions of International Business Times.