Gold Ends NY Flat as Stocks Dive Again, Japan Confirms Recession

From Chris Mullen at GoldSeek.com...

Gold Bullion prices fell slightly in Asia on Monday, rising marginally in London before plummeting to see a $12.05 loss at $730.60 by 08:45 in New York.

Spot Gold prices then rallied back higher to find a $6.85 gain at $749.50 by early afternoon in New York, but then fell back off in the last hour of trade and ended with a tiny loss of 0.11%.

Japan released data showing that its economy slipped into recession in the third quarter with a growth rate of -0.1%, helping crude oil close below $55 per barrel on demand and recession concerns despite some increased geopolitical concerns.

Prices briefly had briefly risen over $58 after pirates seized a massive oil tanker – carrying Saudi oil to the US – and held it to ransom about 450 miles off the coast of Kenya. Most analysts believe the oil will still make its way to the market sooner or later, however.

The US Dollar index fell from early gains and ended just modestly higher after the G20 summit failed to result in any clear actions and US manufacturing data came out weak.

Treasuries rose as the Dow, Nasdaq, and S&P fell markedly again – down 2.5% – on continued and increased worries over world recession.

Silver climbed over 1% to $9.68 and fell over 3% to $9.24 before it also rallied back higher for most of trade in New York, but it still ended with a loss of 2%.

The Gold Price in Euros fell to €583 as the single currency rose vs. the Dollar, platinum lost $25 to $813, and copper fell over 5 cents to about $1.65.

Gold and silver equities fell over 5% in the first hour of trade before they rallied back higher to find slight gains by early afternoon, but they then fell back off into the close along with the major indices and ended with roughly 4% losses.

On the data front, US industrial production and the NY Empire State Manufacturing Index were both stronger than expected, but capacity utilization for Oct. was weak.

Tuesday at 12:30 GMT brings US Producer Price Inflation for Oct., expected at -1.8%, plus Core PPI expected at 0.1%.

The Net Foreign Purchases of US securities report follows, expected at $17.5 billion.