Gold News

Gold Gains 2.3% After Obama Promises 50-Year Record in Infrastructure Spend

From Chris Mullen at

Gold rose Monday to see a gain of $30.20 an ounce – almost 4% – by the New York opening, before it fell back off into the close.

Gold Prices still ended with a gain of 2.3%, while silver slipped from its initial 10% jump to close 6.1% higher.

The Gold Price in Euros failed to hold above €600, however, due to a sharp drop in the Dollar vs. the single currency. Platinum gained $52 to $835, and copper gained over 12 cents to about $1.48.

Gold Mining and silver equities rose over 9% at the open before they pared their gains at midday, but still ended over 7% higher on the day.

There were no major economic reports Monday, but President Elect Obama had announced on Sunday that he plans to spend the most on infrastructure in 50 years in the hope of stimulating the economy.

Tuesday at 15:00 EST brings the Pending Home Sales report for October, expected down 3.0%.

Back in Monday's action, crude oil rose over 7% on Obama's infrastructure plan and a renewed pledge from the Opec oil cartel to cut output.

The US Dollar index plummeted, while Treasuries rose along with the Dow, Nasdaq, and S&P stock indices. Wall Street added to Friday's late gains, closing almost 4% higher despite last week's horrendous jobs report.

Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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