Gold News

Gold Ends Monday 0.65% as Oil Bounces; Stocks Slip on Paulson's Subprime Plan

From Chris Mullen at GoldSeek.com...


Gold Prices
rose to as high as $791.45 in Asia on Monday before falling as low as $776.88 in London.

The Gold Market then rallied back higher in New York trade, ending with a gain of 0.65% for the day.

Silver topped $14.00 in Asia before it fell to as low as $13.75 in London. It then rallied back higher in New York and climbed to as high as $14.215 ahead of a slight dip in afternoon US trade that left it with a gain of 0.64%.


Gold Priced in Euros
rose to about €538, platinum gained $18 to $1455, palladium lost $2 to $345, and copper fell over 11 cents to about $3.05.

Gold and silver mining equities rose over 1% by late morning before they cut into their gains as the major indices fell off in early afternoon trade, but they then rallied back higher in late trade and ended near their highs with roughly 1% gains.
On the US data front, the ISM Manufacturing Index for Nov. came in slightly ahead of forecasts. There are no major economic reports due out on Tuesday.

In the broader markets, crude oil fell for most of US trade on easing geopolitical tensions after Hugo Chavez, president of Venezuela, failed to win voter support to end his term limits. A US government report stated that Iran halted its nuclear weapons program back in 2003, also cutting into oil prices.

But oil then turned higher in late trade and ended with a gain on uncertainty over whether or not OPEC will increase production at their meeting on Wednesday. Previous expectations assumed that the oil cartel would in fact raise production, but with oil now below $90 some are predicting that OPEC will state it no longer needs to bring more supply to the market.

The US Dollar index fell and Treasury bonds rose on uneasiness over the credit market as Treasury Secretary Henry Paulson announced that a plan to combat subprime mortgage foreclosures will be released soon.

The Dow, Nasdaq, and S&P eventually fell on worries over the mortgage industry, but losses were relatively small when compared to recent large market movements.

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Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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