Gold Rises as Mining Stocks Jump 10%; Wall Street Gains on Bernanke Support for New Stimulus

From Chris Mullen at GoldSeek.com...

Gold Bullion rose as much as $24.15 an ounce to $810.10 in Asia on Monday, before it fell back off for most of London and New York trade.

Gold Prices briefly saw slight losses to add to last week's 7% drop, down as low as $784.65 by about noon on Wall Street, but it then rallied back higher in afternoon trade and ended with a gain of 0.21%.

Silver rose over 6% to $9.94 before it fell to see just a $0.11 gain at $9.45 per ounce by late morning in New York. Silver also then rallied back higher into the close and ended with a healthy gain of 4.44%.

The Gold Price in Euros rose to about €592, platinum gained $21 to $880.50, and copper fell over 6 cents to about $2.11.

Fed chairman Ben Bernanke spoke before the US Congress, endorsing the idea of another stimulus plan. Hank Paulson, the US Treasury secretary, detailed the banking plan as both men continued to try to ease the credit markets.

Crude oil rose again on the increasing possibility that Opec will announce a production cut or even stages of cuts at their meeting this Friday.

Treasury bonds rose on worries over the economy, but pared gains after Bernanke spoke about the possibility of another stimulus plan.

His comments also boosted the US Dollar index and sent the Dow, Nasdaq, and S&P over 3% higher on hopes of recovery in the credit market.

Monday's US Leading Indicators also turned positive, outrunning analyst forecasts. There are no major economic reports due out Tuesday.

Gold and silver equities rose over 4% by about an hour into trade before they halved those gains by late morning, but they then rose to new highs in afternoon trade and added about 10% by the close.