Friday, April 22, 2011

Gold Ends Shortened Week With New Record, Mild Gain

The usual sources are on vacation this morning, so this report won't contain the usual excerpting. Since the only market open was Hong Kong, there was a stretch of no trading until 8:30 PM ET. When Hong Kong opened, the metal dropped like a stone below $1,505. Then flailing around, it got to as low at $1,503 before recovering and changing course. The oil market was closed, but the sinking greenback has a priming effect. Losing its tie with the greenback, which bottomed at 2:00 and started recovering 75 minutes later, gold's climb turned into a spike that peaked after 3:30 and left a new record of $1,513.60. Having lost its momentum, gold didn't lose its upside: it settled in to the high 1500s and ambled in to its weekend rest with a small gain. As of 7:13, the end of Hong Kong trading, the spot price was $1,507.70 for a gain of $3.00 on the day. The Kitco Gold Index split the gain into +$2.55 for predominant buying and +$0.45 for a weakening greenback.

For the week, gold racked up a better gain than it did last week: $21.30, or 1.43%. For the third week in a row, the last day of the week's trading saw another record high made.

The U.S. Dollar Index sunk a bit overall, but managed to stay above 74.0 for the entire overnight session except for a brief stretch. Its action overnight was essentially a range bordered by 74.1 on the high side and 74.0 on the low side. About an hour before gold's spike peaked, it sunk to a little below 74.0 but it recovered by 3:30 AM. As of 7:15, the Index was climbing slowly at 74.08.

Since there's little news other than side commentaries, I'm ending the week with this post. Again, thanks for dropping by; try to have a restful weekend.

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