Gold News

Gold Price Falls on IMF News as Stocks Buoyed by S&P's Monoline Rating; Traders Wait for Key Inflation Data

From Chris Mullen at

Gold Prices hit a new high of $952.10 in late Asian trade on Monday before plunging to $932.80 mid-morning in New York on news that the US Congress "may" approve the IMF gold sales mooted last month.

The Gold Market then rallied higher into the close and ended with a loss of just 0.68%, while crude oil traded mostly higher and heating oil set a new all time high near $2.80 on geopolitical worries over Iran, Turkey, and Iraq.

The US Dollar index fell slightly despite notable Yen losses as traders waited for Ben Bernanke's Fed testimony later in the week, plus more economic data.

Existing US Home Sales fell less than expected last month, but they still fell to a 9-year low as the median home price fell 4.6% from a year ago. Tuesday at 13:30 GMT brings Producer Prices for January, expected to show a 0.4% rise month-on-month. At 14:00 comes the Consumer Confidence report for February expected at 82.0.

US Treasuries fell markedly on Monday and the Dow, Nasdaq, and S&P rose over 1% after S&P eased credit market worries by reaffirming its AAA credit rating on bond insurers Ambac Financial and MBIA.

Silver rose to $18.15 before it fell to $17.868, but it also rallied back higher in the last few hours of trade and ended with a gain of 0.44% at a new 27 year closing high.

The Gold Price in Euros fell to about €633, platinum fell $10.50 to $2135, and copper fell roughly 5 cents to about $3.74.

Gold and silver equities fell over 1% the first half hour of trade, but they then rallied back higher into the close and ended with slight gains.

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Adrian Ash

Adrian Ash, BullionVault Gold News

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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