Gold News

Gold & Silver Slip as Bounce in US Consumer Confidence Drives Wall Street Rally

From Chris Mullen at GoldSeek.com...

The Gold Price traded mostly lower over the US Memorial Day holiday on Monday and dropped in Asian trade early Tuesday to as low as $940.75 an ounce.

Gold then steadily climbed back higher for the rest of the day and ended with a loss of just 0.5%.

The Gold Price in Euros fell back to €682 an ounce as crude oil and the US Dollar index rose slightly.

Treasuries fell and the Dow, Nasdaq, and S&P gained over 2% on a surprisingly large jump in US Consumer Confidence – back to still-weak levels last seen before the collapse of Lehmans Bros. last Sept. – that raised hopes over the economy.

The Case-Shiller Home Price Index meantime showed an 18.7% drop for March from a year earlier, the worst ever.

Silver followed a similar pattern to Gold Prices and rebounded from its low of $14.28 to end near its late session high of $14.665 with a loss of only 0.3%.

Platinum lost $16 to $1133.50, and copper gained roughly 5 cents to about $2.15.

Gold Mining and silver equities fell over 3% at the open before they rallied back near unchanged by about 11:00 in New York and then held at about that level for the rest of the day to end mixed.

Wednesday at 10:00 EST brings the US Existing Home Sales report for May, expected at 4,650,000.

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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