Gold News

Gold & Silver End Monday Higher on New Oil Record, Falling Dollar

From Chris Mullen at

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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Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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