Gold News

Gold Bounces, Stocks Fall with Dollar, as China Seen Selling US Debt

From Chris Mullen at GoldSeek.com...

Gold Bullion rose almost 1% from last Thursday’s pre-Easter close to about $889 in Asia on Monday, before it fell $5 in late Middle Eastern trade.

Europe and London remained closed for the long holiday weekend.

Seeing a gain of just $3.25 at $884.75 a little after 08:00am New York time, the Gold Price then jumped higher in New York and ended near its high of $899.75 with a gain of 1.5% for the session.

Silver saw a gain of 10 cents at $12.41 shortly after 8AM before it also shot much higher in morning New York trade and ended near its high of $12.868 with a gain of 3.66%.

The Gold Price in Euros also rose, but only to €669 as the US Dollar index plummeted after China revealed that it has been slowing its purchases of US assets.

Indeed, the world's No.1 buyer of US government debt actually sold bonds heavily in January and February before resuming purchases in March, new data from the People's Bank showed at the weekend.

The Dow, Nasdaq, and S&P fell for most of trade on worries over upcoming earnings reports before they turned higher in the last hour of trade.

Oil fell as the International Energy Agency (IEA) cut its forecasts for world oil demand, predicting a drop of 2.4 million barrels per day in 2009, a 2.8% decline that's the fastest rate since the early 1980s.

Platinum gained $54.50 to $1241, and copper gained over 5 cents more to about $2.13.

Gold Mining and silver equities rose over 3% by late morning before they fell back off a bit in afternoon trade, but they still ended with about 2% gains.

There were no major economic reports Monday. Tuesday brings US Producer Price Inflation, expected flat, with March's Retails Sales expected to show 0.3% growth for March (0.0% ex-autos).

At 15:00 GMT comes the Business Inventories report for February, expected to show a 1.2% drop.

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.

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