Gold Slumps as Stocks Rebound, Oil Falls; Fed "Perma-Hawk" Talks Up Interest Rates

From Chris Mullen at GoldSeek.com...

Gold climbed as much as $12.90 to $976.20 by midday in London on Tuesday, but it then collapsed in New York and ended near its low of $943.65 with a loss of 1.58%.

Silver rose 33 cents to $18.68 before it dropped to as low as $17.837 and closed with a loss of 2.13%.

The Gold Price in Euros fell to about €601, platinum lost $35 to $1803, and copper gained a couple of cents to about $3.73.

Gold and silver equities steadily fell for most of trade and ended over 3% lower.

Oil fell after it became clear that Tropical Storm Dolly will not severely impact supply operations in the Gulf of Mexico.

The US Dollar index rose and Treasuries fell after the Federal Reserve's Charles Plosser came out with some hawkish commentary calling for higher interest rates "sooner rather than later."

"The Fed's perma-hawk spoke loudly about what will not happen," says Jim Sinclair at JSMineset.com – "Fed increases of the discount rate.

"After all the substance-less noise used to paint the day better passes, we return to face the 3rd attempt at $1000 and the Euro moving past $1.60."

The Dow, Nasdaq, and S&P fell markedly at the open on poor earnings reports, but they soon rebounded and ended with over 1% gains after oil prices fell again.

There were no major economic report. Wednesday at 19:00 GMT brings the release of the Fed's Beige Book.

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