Gold Leaps to New Dollar Highs, Adds 3% in Euros Following India-IMF News
From Chris Mullen at GoldSeek.com...
Gold jumped near a new record high late Monday night, reaching as high as $1065.92 in early Asian trade after it was announced that India bought 200 metric tonnes of metal from the International Monetary Fund, and then surging again in New York trade to make new all-time highs at $1085.95.
For the session, the Gold Price in Dollars ended with a gain of 2.9%. The Euro price of Gold leapt to €739 an ounce, up more than 3% on the day.
Oil rose in late trade as the US Dollar index reversed notable early gains and ended only slightly higher after decent economic data – showing a sharper than expected rise in US factory orders – plus Warren Buffett's decision to buy Burlington Northern in what he described as a "bet on the country" eased banking fears.
Treasuries found slight gains in early trade as the Dow, Nasdaq, and S&P struggled to find gains despite Buffett's optimism, but worries over inflation turned bonds lower in late trade while fading risk aversion helped stocks erase early losses and end mixed and near unchanged.
Silver climbed as high as $16.70 in early Asian trade Tuesday, before it fell as low as $16.22 by about 09:30 EST in New York. Silver then also climbed back, ending near its session high of $17.21 with a gain of 5.0%.
Silver remains $3.47 – some 20% - below its 28-year closing high set on 5th March 2008.
Platinum meantime gained $23.50 to $1352.50, and copper remained at about $2.95. Gold Mining and silver equities rose roughly 7% by early afternoon and remained near their highs into the close.
Wednesday at 08:15 EST brings ADP Employment for October, expected down 190,000, and then at 10:00 comes the ISM Services report for October, expected to show moderate growth at 51.5.
Then at 14:15 is the Federal Reserve monetary policy decision, expected to keep the fed funds rate in its range of 0.00% to 0.25%.