Gold & Silver Leap on Israel-Iran Rumors, Falling Dollar & New Woes for GM
From Chris Mullen at GoldSeek.com...
Gold fell a few dollars to $921.72 in Asia on Tuesday, but it then rose to about $930 in London and accelerated its gains in New York.
The Gold Price climbed as high as $945.95 per ounce to end with a gain of 1.78% for the day, while silver dropped slightly to $17.36 in Asia but shot higher to end with a gain of 4.13% for the session.
Crude oil rose on IEA reports of minimal excess capacity worldwide as ABC News reported that Pentagon officials are concerned Israel may attack Iran's nuclear facilities before the end of the year.
Late news about an oil-worker strike in Venezuela could impact energy prices Wednesday as traders watch US stockpile inventory reports.
Wednesday also brings the monthly ADP Employment report for June, expected to show a 20,000 decline in the US. That's followed by the Factory Orders report for May, expected to show 0.5% growth.
The US Dollar index fell Tuesday despite better than expected economic data as the Yen rose on risk aversion and banking worries that kept traders away from the greenback.
Treasuries rose as the Dow, Nasdaq, and S&P fell in morning trade, but all three indices then turned higher after General Motors reported that sales fell "only" 18.2% in comparison to Toyota’s 21.4% drop.
Gold miners and silver equities rose roughly 2% by late morning and remained near their highs into the close.
Bonds turned back lower by the close while the Gold Price in Euros touched an 11-week high of €599 per ounce, platinum gained $9 to $2073.50, and copper gained a few cents to about $3.92.
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