Gold prices stalled about $10 short of their $965 objective overnight and dropped back into the $940-$950 range as the US dollar gained slightly. The trade was slower-paced and appeared to await US GDP data for a better sense of direction. The GDP figures came out in line with expectations this morning, while jobless claims came in well under the estimates of analysts. The unemployment figures are significantly lower than they were in the recession of 2001 and point to a contraction that appears shallower than its predecessor.
New York spot gold went into a sharper decline shortly after the GDP/jobless figures were released, while the dollar gained .18 to rise to 71.65 on the index. Spot gold was quoted down $10.00 at $944.00 bid per ounce as participants deemed the US data to be dollar-positive while at the same time finding another excuse to sell-off in the 0.6% fourth quarter growth rate which is slim enough to stoke fears of recession-driven lackluster demand for commodities. Supporting background factors were seen in rising crude oil (motivated by an Iraqi pipeline explosion) but not much else. Silver headed towards the $18.00 figure, losing 37 cents while platinum added only $2 to $2002.00 and palladium dropped $4 to $451.00 per ounce.
Full commentary will come within the hour. Regards.