Gold News

Gold Ends Tues 1.8% Lower as Flight-to-Cash Boosts Dollar, Hurts Stocks

From Chris Mullen at

Gold traded slightly lower in Asia on Tuesday and then fell off in London and New York to drop as low as $726.40 per ounce.

Gold Bullion prices then rallied over 1% from that low in the last couple of hours of trade, but still ended with a loss of 1.8% for the session.

Silver dropped to as low as $9.55 before it also rebounded, but it still ended with a loss of 4.5%.

The Gold Price in Euros rose to €586 on weakness in the single European currency, while platinum lost $33.50 to $816 and copper fell over 10 cents to about $1.84.

Gold and silver equities fell over 8% by late morning before they cut some of their losses in afternoon trade, but they still ended with over 6% losses.

There were no major US economic reports out Tuesday, and there are none due out Wednesday.

Oil fell below $59 a barrel at one point to a new 21-month low and ended with a 5% loss overall on renewed economic worries that sent the US Dollar index higher on another move to cash.

That also sent the Dow, Nasdaq, and S&P markedly lower on more dismal and rather desperate news from various US corporations. All three indices rallied back near unchanged after Federal Housing chief Lockhart announced at 14:00 EST more steps to try and help Fannie and Freddie stop foreclosures, but stocks then fell back off into the close again and ended with about 2% losses.

The US Treasury bond market was closed for Veteran’s Day.

Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

See the full archive of Chris Mullen articles


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