From Chris Mullen at GoldSeek.com...
Calm and stability returned to the markets today after last week’s volatility due to credit market worries as there were no new major announcements of fund closings or major subprime related losses over the weekend, though most agree that hidden problems remain and wild moves could return at any time.
Spot Gold Prices traded in a very tight range at mostly slightly lower levels throughout world trade and saw a low of $667.70 in early New York trade before the Gold Market bounced back higher for the rest of trade and ended with a loss of just 0.09%. Silver dropped to $12.71 by midmorning in New York before it also rebounded higher in the last few hours of trade and ended with a loss of just 0.16%.
The Euro Price of Gold rose above €491, platinum gained $3 to $1,275, palladium gained $4 to $354, and copper fell nearly 9 cents to about $3.56. Gold and silver equities fell about 1% at the open and remained near their lows for the rest of trade.
On the data front, US retail sales came in slightly ahead of expectations with 0.4% growth reported in July. After the UK reported a decline in manufacturing input prices, but China reported consumer price inflation at a 10-year high, Tuesday at 08:30 EST will bring US producer price inflation for July, expected at 0.1%, plus Core PPI expected at 0.2% and the Trade Balance for June expected at -$61.0 billion.
In the broader markets, oil rose in early trade on worries over tropical depression developing in the Eastern Atlantic, but prices fell to find just slight gains by the close as new forecasts called for the tropical depression to move past and miss the Gulf of Mexico if it stays on its current path.
The US Dollar index rose back above 81 for the first time in a month as credit worries eased for the time being, reducing expectations for a possible Fed rate cut. Treasuries fell in early trade on those decent economic numbers, but they rose to find small gains by the close on worries over further fallout from credit-related losses in the days ahead.
The Dow, Nasdaq, and S&P rose for most of trade as the US Fed injected another $2 billion in overnight repurchase agreements to ease liquidity concerns, but all three indices fell off to find minor losses by the close on uncertainty over further credit problems. Among the big names making news in the market today were Accredited Home and Lone Star, Goldman Sachs, Sears, and Blackstone.