Gold News

Gold ends Mon 0.5% higher as oil retreats, Dow hits new all-time high

From Chris Mullen at GoldSeek.com...


Gold Prices
traded mostly higher following Sept.'s 10% gain in Asia and London early Monday, before falling in New York trade and dropping as low as $741.35 by midmorning.

The Gold Market then spiked back higher around 11:00 EST, remained near its high of $747.75 in afternoon trade, and closed with a gain of 0.51% at a new 27-year high against the ailing US Dollar.

Silver rose to as high as $13.84 in London before it also fell back off in late early New York trade and dropped to as low as $13.61. It then rebounded higher for the rest of trade and closed with a loss of just 0.22%.


Gold Priced in Euros
rose to over €524, platinum lost $3 to $1382, palladium gained $13 to $356, and copper rose over 5 cents to about $3.73. Gold and silver minin equities steadily rose throughout most of trade and ended with about 2% gains.

On the data front, the ISM manufacturing index came in below expectations at 52 versus 52.5 forecast. A reading above 50 indicates growth, however. Tuesday at 10:00 EST will bring the Pending US Home Sales report for August, expected to show a 2.0% drop from July.

In the broader markets, crude oil fell back near $80 per barrel on profit-taking after calm in the Gulf of Mexico over the weekend. Worries over a slowing US economy cut demand expectations.

The US Dollar index rebounded from the new all-time lows made on Friday and overnight in Asia, but it still ended below the 78.00 level as Treasury bonds rose on expectations for more interest rate cuts by the Fed.

The Dow meantime rose to a new all-time high and the Nasdaq climbed to a new six-and-a-half-year high as lower oil prices and hopes for lower interest rates helped the major indices get the fourth quarter off to a strong start.


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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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