Gold News

Gold Ends Monday 1.1% Lower as Stocks Plunge, Bonds Rise on Citi Downgrade

From Chris Mullen at

Gold Prices rose in early Asian trade on Monday, but then fell throughout the session to end New York near their lows for a loss of 1.13%.

Silver followed a similar pattern and ended with a loss of 2.15%. Gold Priced in Euros fell to about €530, platinum gained $2 to $1448, palladium lost $8 to $357, and copper fell nearly fifteen cents to about $3.00.

Gold and silver mining equities fell over 3% by late morning in New York and remained near their lows into the close.

Crude oil ended higher after a choppy session as traders talked about the OPEC summit at the weekend, focusing on the Dollar’s recent weakness and whether or not oil should continue to be priced solely in the US currency.

The US Dollar index traded mostly slightly lower while Treasury bonds rose. Short-term interest rates fell to their lowest in over two years on concerns over the banking sector and derivative losses.

The Dow, Nasdaq, and S&P fell on more credit worries as Goldman downgraded Citigroup and caused all three indices to fall over 1.5% to make for the seventh losing session in the past nine.

There were no major economic reports on Monday, but a report showing homebuilder confidence held at a record low in Nov. Bloomberg reported a survey of economists expecting a recession.

Tuesday at 12:30 GMT brings US Building Permits for Oct., expected at 1,200,000 annualized, plus Housing Starts expected at 1,175,000 annualized. At 18:00 GMT is the release of the Federal Reserve's minutes from its Oct. meeting.

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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.

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