Gold Slumps Again to End Tuesday 1.7% Lower Even as Dollar, Stocks Fall
From Chris Mullen at GoldSeek.com...
Gold dropped on Tuesday as low as $801.65 by early trade in Asia before it rose to find a decent gain at $827 per ounce early in New York.
The US Dollar index fell as the lower than expected trade deficit was overcome by the higher than expected budget deficit and inspired traders to take profits from recent gains in the index.
Crude oil rose after BP shutdown several pipelines in Georgia as a precaution, but prices fell back off and ended lower after Russian President Dmitry Medvedev ordered a halt to military operations in the former Soviet state.
The International Energy Agency also lowered its forecast on Tuesday for oil product demand from Europe and North America, down 1.3% from last year to 48.6 million barrels a day.
The Gold Price then fell back off into the close and ended with a loss of 1.71% for the session. Silver dropped from Monday’s close of $14.63 to as low as $13.99 by early trade in Asia before it rose to find a 1% gain. It also fell back off into the close and ended with a loss of 1.26%.
The Gold Price in Euros fell to about €542, platinum dropped to $1471.50, and copper lost over 12 cents to about $3.23.
Gold and silver equities rose a little over 2% at the open before they fell back off by late morning to see only about 1% gains, but they then rose to new highs in afternoon trade and ended with about 3% gains.
Treasuries rose as the Dow, Nasdaq, and S&P fell on worries over the health of the financial sector after JPMorgan announced another big write down due to credit market related losses.
Wednesday at 13:30 GMT brings US Import & Export Prices for July and Retail Sales for July expected at -0.1%. At 15:00 GMT comes the US Business Inventories report for June expected at 0.6%.