Gold News

Gold Ends Monday $14 Higher as Dollar Falls Ahead of Fed Interest-Rate Decision

From Chris Mullen at GoldSeek.com...

Gold Prices traded about $5 higher in Asia and London on Monday and then jumped in mid-morning New York trade to as high as $812.10 by 10:00 EST even though Pending US Home Sales data surprised analysts with a 0.6% increase in Oct.

The Gold Market then fell back off into the close, but it still ended with a gain of 1.66% for the day.

Silver followed a similar pattern and topped $14.71 before it also came back off slightly into the close, but it still ended with a gain of 2.09%.

The Gold Price in Euros rose to about €549, platinum gained $5 to $1460, palladium lost $3 to $343, and copper fell over 5 cents to about $3.02.

Gold and silver mining equities rose about 2% in the first hour of trade before they came back off in afternoon trade. They still ended with about 1% gains.

The US Dollar index and Treasuries both fell ahead of Tuesday's rate decision from the Federal Reserve. The Dow, Nasdaq, and S&P rose on expectations for an interest rate cut.

Oil rose back near $90 in early trade, but it then fell back off to find slight losses by the close on worries over waning demand in the face of rising supplies.

Tuesday at 10:00 EST brings Wholesale Inventories for Oct., expected at 0.5% – and then at 14:15 comes the FOMC policy statement, expected to cut Dollar interest rates by at least 25 basis points.

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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.

See the full archive of Adrian Ash articles on GoldNews.

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