Gold News

Gold Prices Reach New Record Highs as Dollar Sinks, Oil Rises on US Strike on Somalia

From Chris Mullen at GoldSeek.com...

Gold Prices climbed as high as $989.55 by 10:00 in New York on Monday before falling into the close but still ending with a gain of 0.97% at a new record high.

Silver climbed as high as $20.608 before it also pared its gains in the last few hours of US trade. Platinum gained $70.50 to $2228.50 to a new record high, and copper gained roughly 8 cents to about $3.93.

The Gold Price in Euros rose to over €646 per ounce – a new record high – while Gold Mining Stocks gained over 3.5% to new record intraday highs about an hour into trade before they cut into their gains in late morning.

They still remained about 2.5% higher for the rest of the day and made new record closing highs with over 3% gains.

Oil rose to a new record high of $103.95 on news that the US committed a strike against terror targets in Somalia and on speculation that OPEC may cut production. Oil later cut into its gains on news that Nigeria would resume oil shipments, but it still ended with a decent gain and just 14 cents from its record closing high set last Thursday.

The US Dollar fell to a 3-year low versus the Yen and set a new record low versus the Euro on worries over more subprime related losses to be reported in the near future.

Treasuries fell after it became clear that the Fed would not announce an emergency rate cut today as was rumored early in the session. Construction spending for Jan., was reported to be 1.7% lower from Dec., way below the 0.8% growth expected and worse even than the previous month’s drop.

The Dow, Nasdaq, and S&P traded mostly lower and ended mixed and near unchanged on mixed economic data and worries over further writedowns to be announced this week. There are no major US economic reports due out Tuesday.

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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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