Gold News

Gold Gains Over 1% As Fed Announces New Mortgage Industry Rules

Gold Prices dropped to $790.75 in Asia and then rose to $806.50 by early trade in New York. The Gold Price fell back under $800 by late morning, but it then rallied back higher into the close and ended near its high of the session with a gain of 1.06%.

The Price of Gold In Euros rose to about €557, platinum gained $13 to $1507 to a new record high, palladium gained $2 to $356, and copper fell a couple of cents to about $2.84.

Gold equities rose about 2% at the open before they dipped to find slight losses with the major indices by late morning, but they then rallied back higher in afternoon trade and ended with nearly 2% gains.

Housing Starts fell again and Permits dropped to a 14-year low. Today the fed also announced new rules for the mortgage industry to help combat problems that began in subprime mortgages and spread to other areas in the credit industry. There are no major economic reports due out Tuesday.

Oil rose in early trade on news that Turkey entered Iraq and on news that a number of refineries went on strike in France, but prices then pulled back after it was announced that Turkish troops were in fact withdrawing from Iraq and oil ended back under $90 with a more than 1% loss.

The U.S. dollar index ended slightly higher and treasuries rose on poor housing data and news that the European Central Bank allotted a huge $501 billion to banks in an effort to ease the global credit crunch.

The Dow, Nasdaq, and S&P rose markedly at the open and fell noticeably by early afternoon, but they then rallied to new highs by the close as traders digested earnings reports and news from the ECB and Fed.

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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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