Gold & Silver End Monday Higher on New Oil Record, Falling Dollar
From Chris Mullen at GoldSeek.com...
Gold and silver prices fell roughly 0.5% by late trade in Asia on Monday, but both metals then screamed higher in London and early New York dealing to reach $894.90 and $17.42 per ounce by 09:30 EST.
The monetary metals then drifted over 1% from their highs into the close, but they still ended with gains of 1.52% for the Gold Price and 3.93% for silver.
Oil rose to a new record high of $139.89 before the floor session in New York even began, but it then fell back off for most of the rest of trade and ended slightly lower after having seen over $5 gains earlier in the day.
A fire in the North Sea shut production, and a weaker US Dollar also contributed to these early gains. They were then reversed by news that Saudi Arabia will add another 300,000 barrels per day to world production.
Treasuries rose as the Dow and S&P traded mostly lower on worries over oil and the economy, but the Nasdaq was able to buck the trend and found modest gains on the day.
The Gold Price in Euros rose to about €570, platinum gained $15 to $2043.50, and copper gained nearly 9 cents to about $3.68.
Gold and silver equities rose about 3% at the open before they eased back slightly for most of the rest of trade, but they still ended with almost 2% gains.
The US Dollar index fell as the G8 meeting of finance ministers failed to even mention the currency in their closing remarks of the weekend summit. Previous speculation was that world leaders would announce measures to try and strengthen the dollar, but nothing materialized and the index fell sharply lower as a result.
A weak NY Empire State Index also added pressure to the US currency. Tuesday at 13:30 GMT brings US producer prices for May, expected 1.0% higher.
Building Permits and Housing Starts will follow, with Capacity Utilization and Industrial Production – expected at 0.1% – after that.
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