Gold News

Gold sinks 2.4% as Dollar bounces; US home sales data lead rush into T-bonds

From Chris Mullen at

Gold Prices fell steadily in Asia and London on Tuesday and plunged even further in New York hitting a low of $724.47 per ounce by 10:45 EST.

The Gold Market then rebounded in the last few hours of trade and ended about $5 above its low with a loss of 2.37% for the session, as the US Dollar index continued to rebound from the new all-time lows hit last Friday as traders took profits from the notable recent drop ahead of the closely watched US jobs report due out this Friday.

The Dow fell while the Nasdaq found small gains as traders digested Monday’s record-breaking highs above 14,000 run and continued to debate whether or not the Fed will cut interest rates.

Pending US Home Sales for August came in 6.5% below July's figure, versus the 2.0% drop forecast by Wall Street. Treasuries rose and interest rates fell in reaction, with the Pending Home Sales marking its poorest reading in history.

Wednesday at 10:00 EST brings the ISM Services report for September expected at 55.0.

Silver fell to as low as $13.05 before it rebounded about 2% off that low in the last few hours of trade, but it still ended with a loss of 2.78%.

Gold Priced in Euros fell to €516, platinum lost $41 to $1341 and palladium lost $10 to $346, but copper held strong at about $3.73 with news of a strike in Peru keeping prices supported.

Gold and silver mining equities fell over 4% by midmorning before they rebounded for the rest of trade, but they still closed with more than 3% losses.

Oil fell as Colorado State University downgraded its hurricane forecast, but losses were cut to minimal by the close as traders started paying attention to developing tropical storm Noel.

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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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