Gold News

Gold Jumps 2% to New Record Highs, Stocks Gain as Dollar Falls on Oil Trading Rumors

From Chris Mullen at

Rumors over a plan by Gulf states to stop using the US Dollar for oil trading plus Australia's decision to raise its interest rate – the first raise amongst the major Western economies – sent gold to a new all-time high of $1043.50 by late morning in New York on Tuesday.

Gold fell back off in the last couple of hours of New York dealing, but still ended with a gain of 2.1%, rising back to $1043 straight after official trade ended and afterhours "access" trade commenced.

Silver also soared higher throughout most of world trade and ended near its session high of $17.39 with a gain of 4.0%, but it remains a few dollars short of its 28-year closing high of $20.64 set on March 5th 2008, and well below its all-time high of $50 set in January 1980.

The Gold Price in Euros rose to €705.

Gold Mining and silver equities rose over 7% in the first hour of trade before they fell back off a bit in early afternoon trade, but they still ended with over 6% gains.

The XAU, HUI, and GDM remain about 15-18% below their all-time closing highs set on March 14th of 2008.

Platinum gained $27 to $1318.50, and copper gained nearly 6 cents to about $2.78.

Oil rose slightly on hopes for continued economic recovery, while the US Dollar index and Treasuries fell. The Dow, Nasdaq, and S&P gained over 1% on global economic confidence.

There were no major US data reports. Wednesday at 14:00 EST brings US Consumer Credit for August expected down by $9.5 billion, plus the Treasury Budget for September.

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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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