From Chris Mullen at GoldSeek.com...
Gold Prices rose throughout Asian and London trade on Tuesday after hitting a new three-week low at $773 per ounce.
The Gold Market then rose as high as $798.40 by early afternoon, but it then plummeted about 1% off that high in the last half hour of trade to end with a gain of 1.80% for the session.
Silver followed a similar pattern and rose to as high as $14.80 before it also cut into its gains in the last half hour of trade. It still ended higher by 2.27%.
Gold Priced in Euros rose to about €536, platinum gained $15 to $1463, palladium gained $1 to $358, and copper gained a few cents to about $3.03.
Gold and silver equities rose over 3% in morning US trade before they were dragged down to see less than 2% gains as the major indices fell midday, but they then rallied back higher in the last two hours of trade and ended roughly 5% higher.
The US Dollar index fell back to a new record closing low as it looks increasingly likely that at least one oil producer in the Middle East is going to move off the Dollar standard. The greenback also continues to weaken as the outlook for the Fed remains for lower interest rates heading forward.
Minutes from the Fed's latest meeting noted weak growth and tame inflation. The Fed's Open Market Committee seemed reluctant to cut rates further but will do so if needed. On the economic front, US Housing Starts rose unexpectedly in Oct., but Building Permits fell faster than forecast.
Oil prices, however, rose more than 3% on Tuesday to a new record closing high above $98 on refinery problems and as a hedge against a weak dollar. Heating oil rose to a new record high above $2.69 and gasoline climbed above $2.45.
Treasuries rose after the Fed predicted benign inflation which if true means that they do not need to keep interest rates high in order to combat it.
The Dow rose nearly 150 points in early trade and the Nasdaq and S&P followed suit, but surging those energy prices and uncertain FOMC minutes dragged all three indices lower in afternoon trade and left them with only modest gains at the close.
Wednesday at 12:30 GMT brings Initial US Jobless Claims for last week, followed by Michigan Sentiment for Nov. and then the Leading Economic Indicators for October, expected at -0.3%.
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