Gold Plunges to End Monday 3.1% Lower as Yen & Dollar Rally; Home Sales Data Now Due

From Chris Mullen at GoldSeek.com...

Gold Prices fell throughout Monday's trade, dropping all the way to $797.12 before bouncing 1% into the New York close for a loss of 3.15%, only to drop again after-hours, dipping to a two-week low of $790 per ounce.

Silver dropped to end US trade with a loss of 4.84%.

Gold Priced in Euros fell to €550, platinum lost $41 to $1386, palladium lost $5 to $364, and copper fell roughly 6 cents to about $3.15.

Gold and silver mining equities opened markedly lower and continued to drop throughout most of trade before finally closing with over 7% losses.

There were no major economic reports on Monday, but Tuesday brings Pending Home Sales for Sept. at 14:00 GMT, expected to show a 2.0% drop from Aug., followed by the Treasury Budget for Oct., forecast to show a $53.0 billion deficit.

In the broader market, crude oil fell after Kuwait and Saudi Arabia said OPEC may consider increasing production, but Saudi Arabia's Oil Minister Ali al-Naimi said late in the day that OPEC would not talk about such a possibility at this coming weekend’s summit.

The US Dollar index finally found a bid from new all-time, but while the Dollar rose versus most world currencies it still fell against the Japanese Yen as traders were said to be unwinding carry trades due to risk aversion.

The bond market was closed Monday in observance of Veteran’s Day. The Dow, Nasdaq, and S&P curiously found slight gains for most of trade, despite that carry-trade unwinding in the Yen. But all three indices fell by the close and the Nasdaq ended especially weak with a loss of nearly 2%.

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