Gold News

Gold Ends Monday at New Record High; South African Gold Miners Sink as Power Outage Continues

From Chris Mullen at GoldSeek.com...

Gold Prices quickly moved above $920 in Asia on Monday, before dropping back to as low as $915.13 in London.

But the Gold Market then rose to fresh highs in New York trade, and it closed the session with a gain of 1.80% at a new all-time closing high. Gold had earlier set a new intraday record of $929.45 per ounce.

Silver rose to over $16.55 in Asia and fell to $16.33 in London, but it then made a new 27 year intraday high of $16.71 in New York and closed just a few cents off that high with a gain of 1.65%.

The Gold Price in Euros rose to about €627, platinum gained $49 to $1721 to a new record high, palladium gained $5 to $385, and copper remained at about $3.22.

US gold and silver equities fell slightly in the first hour of trade along with the major indices, but they then steadily rose for most of the rest of trade and ended with about 1.5% gains.

Over in Johannesburg, South Africa, in contrast, the JSE Gold index of local gold miners dropped almost 6% for the day as a power outage continued to block all current operations and threaten future exploration in the world's No.2 producer nation.

On the economic front, New US Home Sales fell 4.7% in December to a near 13-year low after November’s plunge, and sales were down 40.7% compared to December 2006 said the Commerce Dept. Tuesday at 08:30 EST brings Durable Goods Orders for December expected at 1.5% and at 10:00 is Consumer Confidence for Jan., expected at 87.0.

Back in Monday's action, crude oil fell in early trade on worries about the economy and falling demand, but it rose to find a small gain by the close on hopes that the Fed will cut interest rates by a large amount to help stimulate the economy.

The US Dollar index fell while Treasuries and the Dow, Nasdaq, and S&P rose on those rate-cut hopes. Fed fund futures currently expect a 94% chance for a cut of 50 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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